Todor Pichurov

NanoTech Entertainment Inc (OTCMKTS:NTEK) Slips and Slides

by Todor Pichurov April 7, 2016

The press release that gave NanoTech Entertainment Inc (OTCMKTS:NTEK, NTEK message board) wings for a brief while seems to have run out of fuel. Following a brief excursion to over a cent per share, NTEK has now trundled back down in sub-penny territory. Yesterday the stock dropped another nearly 8% and ended up at $0.0081 per share by the closing bell.

NTEK is a company best known for its UltraFlix 4K service that offers 4K movies sold on demand, primarily prcocessed and upscaled to the new Ultra HD format. The latest bit of news that helped NTEK up the chart was the announcement of a new subset of UltraFlix dubbed simply HD. Instead of 4K material, the service aims to offer regular HD for streaming on mobile devices such as tablets or smartphones running both Android and iOS.

Having recently watched the stock drop to three-year lows in the first quarter of 2016, traders got excited by the news and sent the price up in a buying spree.

Perhaps the single biggest issue with NTEK is the company's share structure and the pace at which it is dishing out new shares. At the start of 2015 the company had around 724 million outstanding common shares. Over the course of last year this figure swelled up to a massive 1.65 billion. Dilutive financing is something common for many OTC companies and the provisions under which it is signed are generally worse when the company is a pink sheet stock.

NTEK seems to be purposely obscure when detailing its share issuances. The company provides numbers of shares issued in its Issuance History reports chapter but does not provide the dollar value of the amount converted or the per-share price of the issued shares. That is some first-rate pink sheet reporting, right there.

The company's next financial report is expected within roughly a month's time, sometime in mid-May.

Comments 1

1. Guest
May 12, 2016, 03:00PM

Quotes the crooks/folks who run NTEK are stealing innocent investor/shareholders money and most of those investments became near nothing or worthless now. The dilution continues, another huge dilution is coming as the CEO incharge sent emails to investors of increasing outstanding shares to fund activities that means, further sub penny to sub sub penny is in the making and no one is sending them to jail, the SEC's perhaps impotent that despite so many complaints they have not taken any serious action on ntek?

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