Xumanii International Holdings Corp d/b/a Imerjn (OTCMKTS:XUII) Crashes After Quarterly

If you have been following the pennystock world even remotely this year it is highly unlikely that you haven’t heard the name of Xumanii International Holdings Corp (OTCMKTS:XUII). The pump for the company may very well be the biggest for 2013 and the last major one for the infamous pumper Awesome Penny Stocks. Although APS didn’t retire immediately after failing to bring XUII to prices of $1 per share they were soon forced to do it after the SEC suspended their next two picks – PacWest Equities Inc (OTCMKTS:PWEI) and Pacific Clean Water Technologies, Inc. f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT).

After the end of its pump as is usually the case XUII decided to change its business, change its management and change its name and ticker. Well for now XUII is going to keep their stock ticker but are going to do business under the name Imerjn. Thanks to all this they managed to convince traders that the future is once again bright and last week their stock had five consecutive positive sessions surging from an opening price of $0.018 on Monday and closing the week at $0.055, or a cumulative rise of 300%. 

Sadly reality once again caught up with the company and after filing their financial report for the quarter ending October 31 yesterday the stock quickly plummeted towards the bottom. At the end of the day it had lost more than 15% dropping back down to $0.045. So what resources did the company have in order to pursue their plans to create and start selling their own tablet computer as early as January next year? Take a look for yourselves:

• $118 thousand cash
• $130 thousand total assets
• $1.98 million total current liabilities
• ZERO revenues
• $165 thousand net loss

Admittedly XUII were able to improve their cash reserves a bit when on December 3 issued another senior convertible note in the principle amount of $450 thousand and purchase price of $300 thousand, a discount of 33%. The problem is that the deal was madewith Hanover Holdings, one of the most notorious toxic funders. XUII have already reached 271 million outstanding shares out of the 450 million authorized.

In early trading today the stock is trying to recover sitting at 20% above yesterday’s close. Still it is extremely important to do your own due diligence before attempting any trades involving pennystocks.