Borislav Tonev

Halitron (OTCMKTS:HAON) Fires a Blank

by Borislav Tonev February 5, 2016

In September, Bernard Findley, Halitron (OTCMKTS:HAON)'s CEO, admitted that the company has failed to reach its $300 thousand equity capital raise target that it had set itself in January 2015. Nevertheless, he expressed his optimism about the future.

He did it again on Monday. Mr. Findley issued another press release in which he stated that thanks to some recently signed letters of intent, HAON shareholders can expect more than $1 million in revenues for 2016. He included a link to the corporate presentation uploaded on the OTC Markets which is also full of optimism.

Investors, however, don't seem to be convinced. Yesterday, for example, the news from above was distributed through some emails by Penny Stock Locks (who pocketed $8 thousand), but although the promotion drew a bigger-than-usual volume, the performance was hardly stellar. HAON opened the day with a rather big gap up, but instead of going further up, it slipped and fell down to a close of $0.03 per share – a loss of nearly 12%.

That might be considered a shame by some because there are one or two things to suggest that the company really is going somewhere. A few months ago, HAON was severely delinquent in its filings, and the pitiful volumes suggested that the company is all but dead. In December, however, the management team filed quite a few reports at once and the ticker regained its “Current Information” status.

The figures in the latest statement are certainly not perfect, but compared to what other Pink Sheet companies disclose, they don't look too horrifying:

  • cash: $84 thousand
  • total assets: $360 thousand
  • total liabilities: $700 thousand
  • quarterly revenues: $397 thousand
  • quarterly net loss: $207 thousand

So, as far as the press releases are concerned, HAON is moving forward and the figures above show that there might be a base the company can build upon. The stock, however, is clearly refusing to act accordingly. Why is that?

Remember the equity raise initiative we mentioned in our first paragraph? HAON didn't reach its $300 thousand target, but it did manage to raise around $115 thousand with the issuance of just over 8.2 million shares at $0.014 a pop. If these shares hit the open market, the ticker could have some serious problems moving up the charts. And we're not sure if the entities that took part in the offering are willing to wait for the closing of the announced acquisitions.

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