Simona Tolcheva

XUMANII INTERNATION (OTCMKTS:XUII) With Over a Billion Traded Shares

by Simona Tolcheva August 11, 2014

XUMANII INTERNATION (OTCMKTS:XUII, XUII message board) dropped by 31.25% during yesterday's session, but just before the closing bell sounded, it managed to regain 9.09%. The company racked up its biggest volume since the beginning of the year – over 1 billion shares. Ultimately, it closed at $0.0011.

XUII's latest filings are from August 08. One is a Schedule 13-D, which discloses that Adam Radly, XUII's CEO, owns 181.6 million shares, a total of 5% of the company's outstanding shares. And the other one is a Schedule 14, announcing that the majority stockholders have approved an increase of the authorized shares amount without organizing a meeting. From now on the A/S will be 10 billion.

All's well and good until you start digging. First of all, on the OTC company profile it states that XUII's A/S is 450 million as of October 24, 2013. Since that is outdated information, we looked through their filings for the latest 10-Q report. It covered the quarter ended April 30, and it also states that the company has 450 million authorized shares. But then you look at the O/S amount listed in the report and it becomes obvious that there is some sort of mistake. According to the 10-Q, there are 580 363 536 outstanding shares. That can't be right, can it?

When you dig a little deeper on the Secretary of State's website for Nevada, you find out that XUII has officially increased its authorized shares amount from 450 million to 3 billion. The date displayed on the website is February 28. Since it was increased long before the file date of the latest quarterly, we wonder why the increase wasn't included in it.

It is quite the jump from 450 million to 3 billion, but obviously it wasn't enough since XUII has decided to increase it to 10 billion. Would this increase lead to dilution? Time will tell, but it is certainly a valid possibility. And it is probably safe to say that the news of this increase was the reason for XUII's nose dive.

At 6.00 am today, XUII issued its latest press release. It announced that the company's first ever TV commercial advertising its tablet computer is out. They even provided a link to the ad itself. We will see if the news would help XUII move higher in the charts, or not.

As we have mentioned in our previous articles, XUII was the target of a paid promotion a while back. It was carried out by Awesome Penny Stocks, one of the most influential promotional outfits from the last few years. And the person who stood behind APS, John Babikian, was sued by the SEC for sending pump emails about a different company to about 700 thousand people, causing a craze – 7.8 million shares traded in 90 minutes.

XUII's fiscal year end is on July 31, so its next quarterly will come out by the end of October, and it will be their annual report. Until we take a look at it, we advise due diligence before deciding whether or not to make an investment.

Comments 1

1. Guest
August 11, 2014, 01:27PM

Quotes this stock is a joke!

Type the characters that you see in the box (5 characters).