Borislav Tonev

Oculus VisionTech Inc (OTCMKTS:OVTZ) is Acting Strange

by Borislav Tonev March 31, 2016

Oculus VR, Inc. is the maker of the Oculus Rift – one of the first ever commercially available virtual reality headsets. Oculus VisionTech Inc (OTCMKTS:OVTZ, OVTZ message board) is a penny stock company that has a completely different business plan – developing digital watermarking technology. The similarity in the names has caused some confusion in the past.

When Oculus VR got acquired by Facebook Inc (NASDAQ:FB), many people failed to notice the difference and OVTZ started climbing the charts. The penny stock company's management team were even forced to clear the confusion with a press release. Surely, investors can't make the same mistake twice. Can they?

Well, OVTZ has been climbing the charts lately. Yesterday, for example, it hit a new 52-week high of $0.90 and it stopped at $0.85. We don't know whether that has anything to do with it, but we do know that Oculus Rift was officially released on Monday and we also know that the OTC company hasn't issued any press releases that could trigger the climb.

Basically, if you're one of the significant number of people who have put their money in OVTZ over the last few months, you should do well to understand what you have invested in. Here's a few facts that should help you with the all-important due diligence.

As we mentioned already, OVTZ wants to develop a clever piece of technology for the protection of online documents, pictures, and videos. Back in September, the company had some Alpha and Beta tests lined up, but it's fair to say that it didn't have the money to carry them out. In fact, at the end of Q3 of 2015, OVTZ had:

  • cash: $2,436
  • total assets: $9,275
  • current liabilities: $1,333,100
  • NO quarterly revenues
  • quarterly net loss: $81,984

Money was tight and the balance sheet was quite ugly. In order to fix those issues, OVTZ organized a non-brokered private placement and raised CDN $2.24 million (about USD $1.7 million).

The members of the management team and Board of Directors bought an aggregate of 13.8 million shares of common stock and some unnamed investors acquired a further 18.2 million shares. As some of you might have calculated already, the stock was sold at a price of CDN $0.07 (or around USD $0.05) per share.

According to a recent press release, the Alpha testing is now over and the document protection system is closer to commercialization. Once the revenues start flowing, the ticker might just attract more investors. At the same time, however, the cheap shares issued in October could put a big spanner in the works which is why treading carefully might not be a bad call.

Comments 1

1. Guest
October 06, 2019, 06:55PM

Quotes I want to invest 200.00 us dollars in this stock. How do i do this and whats it worth??

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