Borislav Tonev

Pocket Games Inc (OTCMKTS:PKGM) Remains Shrouded in Mystery

by Borislav Tonev February 9, 2016

Virtually every single experienced OTC investor will tell you that investing in fully reporting companies is better than putting your money in enterprises that use the alternative reporting standards. Generally speaking, this is true, but even the companies that stick to the SEC rules could sometimes leave you scratching your head. Case in point: Pocket Games Inc (OTCMKTS:PKGM, PKGM message board).

In October, PKMG announced that they are working on closing the acquisition of a company called Viximo before the end of their first fiscal quarter. The press release wasn't followed by an 8-K form, but despite this, as soon as the deadline approached, people started paying attention.

Several active sessions brought quite a lot of fluctuations and wild swings, and yesterday, after logging a dollar volume of nearly $120 thousand, the ticker reached a close of over $0.01 per share for the first time in just under a month. Earlier today, the news that everyone was waiting for finally arrived.

PKGM proudly announced that the Viximo acquisition has been closed. Once again, however, the press release isn't accompanied by an SEC filing which means that there will be two types of people looking at PKGM in the days to come. There will be the investors who will be putting their money on the line despite the lack of regulatory documents, and there will be the ones who will be treading carefully.

Let's put you in the shoes of the more weary investor. You've already heard the news, but you've got nothing more concrete to work with. All you can do is scour the internet and gather as much information as you can. This is not as easy as it sounds.

Viximo is a company that is supposed to be heavily involved with the social media, yet its Facebook and Twitter profiles seem to be abandoned. Its own website hasn't been updated for quite a while as well. It says, for example, that Dale Strang is Viximo's CEO, yet, if you take a look at Mr. Strang's LinkedIn profile, you'll see that he left the company in 2012. Some Googling later, you'll stumble upon an article which says that also in 2012, Viximo's “core team” was acquired by a company called Tapjoy. According to PKGM's press releases, the social gaming platform is now headed by Michael Pope who has only briefly mentioned this position in his LinkedIn resume.

Basically, the internet is not exactly overflowing with information on Viximo's current state of affairs, and things are not looking much better when it comes to PKGM. The small OTC company recently missed the deadline for its own 10-K which means that the latest set of figures are now quite old. A summary of them can be found in our previous article and so can a brief walk through of the previous penny stock adventures of David Lovatt, PKGM's CEO.

Before we leave you to draw your own conclusions from the facts listed above, we'd like to urge you not to underestimate the $93 thousand worth of debt convertible at discounts ranging from 40% to 49%.

About ten minutes into today's session, PKGM is traded at $0.012 per share (about 14% in the green).

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