Georgi Kamburov


by Georgi Kamburov July 30, 2014

Xumanii International Inc (OTCMKTS:XUII, XUII message board) d/b/a Imerjn enjoyed three extremely optimistic sessions in a row. Starting from an opening price of $0.0005 last Thursday the stock climbed to $0.0025 at the end of Monday’s session. The gain of 500% was certainly impressive but we warned you that the stock is highly volatile and such prices may prove to be too much for it to support.

And yesterday XUII displayed exactly that when in just a single day managed to wipe 32% of its value dropping down to $0.0017. The drop took place on close to 600 million traded shares and a dollar volume of $1.15 million. For now the stock is keeping most of its gains but it could easily slide back down to the triple-zero ranges.

XUII finished the latest quarter with:

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

The company launched its cloud service months ago but despite having a user base of 30 000 for now it has been unable to generate even a dime in revenues. A TV commercial for it should begin airing in just a couple of days on a few major networks which should result in an influx of new users and hopefully funds will start flowing to the company.

On July 11 XUII announced that the Android tablet was finally ready and was now available for purchase on Amazon. Unfortunately this initial production run consisted of a rather underwhelming number of units and currently the Amazon page states that there are only 10 left.

Looking through the quarterly report also reveals the multitude of outstanding convertible notes that offer their owners some tasty discounts to the market price ranging from 40% to 50%. Although the conversion of debt is certainly not the only reason for the dilution of the common stock an increase from 328 million to 580 million just for the months between March 17 and June 14 is quite alarming.

Last Tuesday XUII announced the acquisition of Rocky Mountain Tracking for the total sum of $3.1 million. It should be obvious that the company doesn’t have access to such a sum and that is why the payment is going to consist of cash, a note and preferred stock. For now no further details have been disclosed but at least investors should be glad to learn that the preferred stock will not have a conversion feature.

The CEO of the company recently bought over 180 million shares priced at $0.0006. Some investors regard the transaction as a sign of support for the company but if the CEO decides to sell even a portion of these shares it could prove detrimental to the performance of the stock.

At the moment XUII is trading close to 6% in the red at $0.0016.

Comments 2

1. Guest
January 26, 2015, 08:13AM

Quotes Thanky Thanky for all this good inoiomatfrn!

2. Guest
January 24, 2015, 11:20AM

Quotes That's the smart thikning we could all benefit from.

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