Modern Mobility Aids Inc. (OTC:MDRM
, MDRM message board
) has been changing its market position a lot over the past week. After a 13.81% price jump on Thursday,
the stock closed the week with a 12.13% loss, while its traded volume reached 5.8 million shares.
However, MDRM looks determined to cut off the loss as soon as possible, supported by its well-known strategy - promotions.
Yesterday, the stock has been promoted all day long, reaching a total compensation of $110,000 for the campaign. And while the e-mails were pouring in, MDRM found another method to pump up the stock price. Namely, by hot news.
It was released last Friday when the company reported a technology agreement with ACGT Corporation to combine its resources and expertise with Lumigene Technologies, Inc. to develop and commercialize molecular diagnostic products.
Not long ago, Modern Mobility announced the definitive agreement to acquire Lumigene, however, the acquisition remained pending. Now MDRM and Lumigene claim they have agreed to extend the closing of the share purchase agreement to Nov 30, 2012 in order to focus all their resources in commercialization of the Lumigene products.
The positive announcement along with the stock alerts should be enough for MDRM to get the climb. Though, it is up to be seen today.
Meanwhile, the biggest issue for Modern Mobility remains its financials. As of December 31, 2011 the company's total liabilities were much higher than its assets and the net loss has increased. In addition, both the stockholders' deficit and the deficit accumulated during the development stage flew up.
Due to its operating losses and working capital deficiency, MDRM must raise additional funds to initiate or acquire a business and to fund its continued operations. However, while the revenues are missing, the company may not be successful in raising additional funds or achieving profitable operations.