Georgi Kamburov


by Georgi Kamburov July 29, 2014

Yesterday the stock of Xumanii International Holdings Corp (OTCMKTS:XUII, XUII message board) d/b/a Imerjn continued with its strong performance and added another 92% to its value. The stock opened at $0.0014, ran to an intraday high of $0.0026 and closed just a little lower at $0.0025. Throughout the session the record for the company number of 744 million shares changed hands. As a result the dollar volume for the day reached $1.45 million. So can the company retrace its steps back the chart and return to its previous price ranges?

For quite a while XUII was unable to stop its downwards trend. Despite changing its business plan drastically and having a new management team investors seemed reluctant to trust the company after last year’s fiasco. Back then XUII were the target of a $1.6 million paid pump carried out by the now retired pumper Awesome Penny Picks. Still, the company didn’t give up and slowly moved along with its operations.

They announced plans for an Android tablet and launched a cloud service. Unfortunately, their financial results were far from encouraging. At the end of April the company had:

• $400 thousand cash
• $788 thousand total current assets
• $2.6 million total current liabilities
• ZERO revenues
• $1 million net loss

In addition to the limited financial resources the report also revealed a disturbing amount of dilution. Just for the period between March 17 and June 14 the number of outstanding shares increased from 323 million to 580 million. Back in January XUII approved an increase of their authorized shares from 450 million to the massive 3 BILLION. It is more than likely that the dilution won’t be stopping any time soon especially when you take a look at Note 3 of the quarterly. In it the company details the numerous convertible notes it has issued. The holders of the notes have the right to convert them into common shares at a discount to the market price ranging between 40% and 50%.

This month though XUII were finally able to launch their tablet and it is now available for purchase on Amazon. A TV commercial for the Imerjn cloud was created and around August 1 it should begin airing on VH1, Fuse, Pivot, CNBC, Fox Business and G4TV. On July 22 the company announced the acquisition of Rocky Mountain Tracking, a provider of GPS tracking solutions, for $3.1 million consisting of cash, a note and preferred shares. For 2013 Rocky Mountain generated $1.4 million in revenues.

XUII might become a revenue generating entity at last but they may find it hard offsetting the effects of the dilution. The past history of the company shouldn’t be ignored either. Do your own due diligence and keep in mind that at these prices the stock is capable of falling down equally as fast.

Comments 1

1. Guest
July 29, 2014, 10:51PM

Quotes when xuii will reach $1

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