Writ Media Group Inc. (OTCMKTS:WRIT)’s Pump Goes Bad
tags: WRIT
Writ Media Group Inc. (OTCMKTS:WRIT) had a nice climb while its pumps were still fresh – but that time has passed now.
Thursday saw the ticker lose all its recent gains, and then some – and Friday took it even lower. And how could it not?
After all, we’re talking about a pumped-up OTC Markets’ company who’s delaying filing its most recent financial report. Meanwhile, its latest report looked like this:
- Cash – $0.2 thousand
- Total current assets – $0.9 thousand
- Total current liabilities – $888 thousand
- Notes payable – $265 thousand
- Net loss – $665 thousand
As expected by a suspicious penny stock that’s currently being touted, a significant portion of WRIT‘s liabilities consists of toxic debt. How toxic, you may ask?
Well most of its notes outstanding carry conversion provisions as horrible as “conversion price is 55% multiplied by the lowest value weighted average price for the Common Stock during the 5 trading day period ending on the latest complete trading day prior to the conversion date”.
And it’s not like WRIT‘s noteholders are the least bit shy to cash in their debt – and the evidence for that is clear for all to see. About eight months ago, the company had performed a 1 for 200 reverse split that left it with about 2.3 million shares outstanding. Fast forward to three months ago, and WRIT‘s total shares issued had grown all the way to 25.6 MILLION.
Is it any wonder, then that the ticker is dropping like a rock? We should hope not, just as it shouldn’t be any surprise for anyone if WRIT continued falling for some time yet.
