Georgi Kamburov

XUMANII INTERNATION (OTCMKTS:XUII) d/b/a Imerjn Remains Volatile

by Georgi Kamburov August 6, 2014

Last month Xumanii International Holdings Corp. (OTCMKTS:XUII, XUII message board) were finally able to stop the devastating slide of their stock. For months on end the ticker went nowhere but down dropping from close to 5 cents at the end of 2013 to a new 52-week low of $0.0005 a few weeks ago. Still, the company persevered and announced a couple of major steps in the right direction.

At the start of July XUII launched their Android tablet and since then it has been available for purchase on Amazon. A TV ad campaign for their customizable cloud service was announced to begin at the start of August. The commercial should have aired on CNBC on August 5 and is scheduled to air on Fox Business during Opening Bell on August 6 and 7. On July 22 the company acquired Rocky Mountain Tracking, a GPS solutions provider that generated around $1.4 million in revenues for 2013.

The multitude of important developments certainly attracted the attention of the market and as a result the stock quickly left the triple-zero price ranges. It performance, however, has been far from stable. Thanks to the increased awareness XUII is an extremely volatile choice at the moment.

Yesterday the company opened at $0.0019, quickly surged to a high of $0.0024 but immediately after that started sliding towards the bottom of the chart. At the time of the closing bell it had fallen more than 16% in the red at $0.0015. The crash took place on a traded volume of 641 million share, a number that is close to three times higher than the average for the company.

The reluctance to trust the stock shown by investors can be easily explained by opening the latest financial report filed by the company. It covers the quarter ending April 30 and according to it back then XUII had:

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

The poor financials are far from the only red flag though. In order to finance its operations the company has issued quite a few convertible notes. If you want to see the full picture you can check Note-3 of the quarterly but in short the owners of the notes can convert them into common stock at a rate equal to 50% of the lowest trading prices during the 20 trading days prior to the conversion date. The number of outstanding shares grew from 328 million to 580 million just for the period between March 17 and June 14. Around 150 million of the newly issued shares came into existence as a conversion of debt.

The recent developments could mean that XUII will finally generate its first revenues but the negative effects of the dilution will be hard to offset. Not to mention that the company was one of the biggest paid pumps for 2013. The promotion was carried out by the now retired Awesome Penny Stocks, one of the most infamous pump newsletters.

For now interest in the stock should remain high thanks to the effects of the ad campaign and the fact that on August 12 the CEO of company is going to be a member of a panel discussing the cloud services at the IT Expo. Still, the volatility displayed by XUII shouldn’t be ignored. Plan your position accordingly in order to avoid any unnecessary losses.

Comments 0

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