Ubiquity Inc (OTCMKTS:UBIQ) Barely Avoids Another Crash
After soaring up the chart by more than 153% last Tuesday many thought that the positive momentum would push Ubiquity Inc (OTCMKTS:UBIQ) to even higher prices. In reality, however, the exact opposite happened – the stock crashed hard for the next two sessions.
At the start of Friday’s trading it seemed that UBIQ would suffer another painful drop. They opened at a little over $0.23 but immediately sank to a low of $0.185. Thanks to a strong rally in very last minutes of the session UBIQ were actually able to spike in the green and to close the day with a gain of 7.19% at $0.261. The performance was rather shaky so what will happen when the market opens after the weekend?
Well, as we said, UBIQ managed to capture the attention of the market by announcing three new patents that were granted to them by the United States Patent and Trademark Office. The problem is that after a bit of research it was discovered that the patents have been issued months ago with the earliest one dating back to the start of January.
At the same time Tuesday’s gains become far less impressive when you take into consideration the fact that on the same day UBIQ were targeted by a paid pump. The pump newsletter OTC Stars received $20 thousand as compensation while the rather active lately Wolf Of Penny Stock bagged the much larger amount of $50 thousand.
Investors have a lot more to worry about though. If you open the OTCMarkets profile page of the company you will be greeted by the Caveat Emptor skull and crossbones sign. In addition, if perhaps you want to take a look at the recent financial results of company you will find that UBIQ have not filed a single quarterly report this year. The company has been focused entirely on the annual report for 2014 and the problems they had with it. First the report was filed without the permission of KLJ & Associates, LLP, UBIQ‘s registered accountant at the time. The company filed an amendment but then it turned out that their intangible assets have been overstated by $6.3 million. The final amendment of the report was submitted at the start of August and contained the following numbers:
• $102 thousand cash
• $389 thousand current assets
• $3.6 million current liabilities
• $68 thousand annual revenues
• $23 million annual net loss
The subsequent events sections revealed that during the first seven months of the year the company sold over $2.2 million in convertible notes that can be turned into shares at discounts to the market price starting from 35% and going up to 45%. Another 17 million shares were sold for cash proceeds of $1,520,500. This makes the average price of the shares just $0.088.
The risks surrounding UBIQ should definitely not be underestimated. Take the necessary time to do your own due diligence before putting any money in the stock.
