Anastas Gegov

Will HDS International Corp. (OTCMKTS:HDSI) Drop In Double Zero Land Once Again

by Anastas Gegov April 17, 2015

By now it should have become very clear that HDS International Corp. (OTCMKTS:HDSI, HDSI message board) is not something that you might consider as a sound investment. The company stock had already hit rock bottom in the beginning of the year, being traded at a price of $0.0001 per share for quite some time.

 

Then, we saw some fluctuations in February and March, as well as a significant increase in daily volume. But does HDSI really deserve even an ounce of the attention that it is getting. Judging by the company's financials it doesn't. Finally, after HDSI didn't manage to file their annual report for 2014 with the SEC on time, we got to see what they had in their balance sheets on April 15 and it wasn't pretty.

 

  • cash: $73!!!
  • current assets: $1,093!!!
  • current liabilities: $1.43 million
  • revenues: ZERO
  • net loss: $607,819

 

 

With hand on heart we can say that these are, by far, some of the worst numbers that we have ever seen in a financial report of a company, even one that is listed on the OTC marketplace. This speaks volumes for itself, but it isn't the only major red flag surrounding HDSI.

 

As we wrote in our previous article, the company is working very hard to set some sort of a dilution record, issuing massive amounts of shares at some impressive discounts. We can't really remember if we have ever seen a company issue 172 million shares priced at $0.00005 (yes, those are four zeros) in order to clear a mere $8,700 in debt.

 

The latest press release coming from HDSI HQ is concerning the close of a $4.6 financing deal in the form of debt and equity capital. Interestingly enough, the PR reads that "The equity facility funds at the discretion of the Company (HDSI) upon filing and effectiveness of a registration statement and may require an uplisting of HDSI to the OTCQB marketplace.

 

If you are familiar with the OTC marketplace and the requirements of uplisting to the OTCQB tier you would know that the minimum bid price test must be $0.01 per share, or in other words, 1000% higher than the triple zero border of $0.001 at which HDSI is sitting after yesterday's 16.67% drop.

 

All in call, given all these facts HDSI is considered a very risky investment choice and it would be best to do your own due diligence and weigh out the risks if you are even considering of making a play.

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