Ekaterina Zelenkova

Nexaira Wireless, Inc. (OTC:NXWI) Pays Millions In Cash to Promote Own Shares

by Ekaterina Zelenkova April 9, 2010
NXWI_promoted_for_millions.pngYesterday, Nexaira Wireless, Inc. (OTC:NXWI, NXWI message board) began an unprecedented promotional campaign of its stock, which resulted in a  volume of more than half millions shares.

According to the information from the web site of our colleagues at “Stockpromoters”,  NXWI  will compensate the promoter “DAILY PROFIT” eighteen million, two-hundred and seventy-thousand dollars.

Yesterday's trading session produced no benefits to NXWI from the promotion. The volume traded was almost triple that of the end of January. At that time, NXWI stock was promoted only by penny stock newsletters, spread in Internet with headlines like "Free Alerts On Stocks About To Run Huge Profits".

NXWI_price_chart.jpgThe multi-million dollar promotional campaign was unable to push the NXWI stock price. NXWI rose by $0.03, or 4.54%, to $0.69 in the session.

Maybe investors were not impressed by the expensive NXWI share awareness campaign, as was the case at the beginning of the year.

In February, NXWI paid promoters thirty tree thousand dollars for stock promotion, while a third party covered another thirty thousand dollars cash.

These were symbolic amounts granted for NXWI stock promotion in comparison with the last one. And they fulfilled their purpose. As the chart here shows, March was a period of weak NXWI stock performance. During March there were no NXWI stock promotions.

The question is, from where will the company get eighteen + million? The latest NXWI financial report for the three months ended January 31, 2010 shows:
  • Net cash used in operating activities-      $(573,464)
  • Net cash provided by financing activities - $372,200
  • Total current assets -                             $862,310.
Just to remind the readers, total current assets includes all cash and cash equivalents, accounts and tax receivables and the company's inventories. These assets will not generate the millions mof dollars. At present, in its 8k filings, NXWI has no announcement of significant material interest.

If investors take a look at the NXWI revenues for the three months ended January 31, 2010 and 2009, as a possible source to fund the company's promotion, they will find:
  • Revenues-    $ 506,338 and $ 2,083,450
  • Net loss-   $(1,142,750) and $  (527,254).
Seems, that this will not pay the NXWI stock promotion either.

And finally, a quotation from the above reports, related to NXWI's management plans for funds raising: "The Company has plans to raise $3-5 million within the next three to six months through equity financing. Management believes the existing shareholders and prospective new investors will provide the additional cash needed to meet the Company's obligations as they become due.".

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