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Xiaoxi_penguin commented on a stock · Nov 8, 2022 20:18

What’s happening now that it is below $1?

Before you read the post, please remember to do your own DD.
At first, I came across this post from reddit, which makes sense of what’s going on. But of course, it’s speculation. The thing about DD is that you grab things that makes sense and compare it with all of the other things that you know about it which includes SEC fillings, company movements, financials, news, announcement etc… Then collect the info that makes sense and fit while dump the ones that doesn’t fit in.
What’s happening now that it is below $1?
I know that they are many out there that has been saying that buyout is a rumour or it’s just a few pieces that investors have been grabbing here and there to form a connection. But the truth is, the company did mention their intention about it, which you could see it from the pic below. (You can try to search online to see if MT Newswire is reliable)
What’s happening now that it is below $1?
I won’t be repeating the stuff about the company movements as well as the surrounding signs that has been happening for the past 2 years so I’ll jump straight to the compliance issue.
On Oct 18 2022, the company regained compliance where the stock price was at least $1 after the R/S was made, thus it continue to be listed. (As you could see from the pic below)
What’s happening now that it is below $1?
However, it never updated the compliance on Nasdaq ever since.
What’s happening now that it is below $1?
Yes, the company doesn’t care about the public’s opinion about it since the stock price doesn’t matter as long as they are able to sell it off, and they are able to hold on to it to get listed until that happens. Bad management, releasing bad news when an early sign of revival of stock price is shown etc.. anything that a running company don’t do, they do it and vice versa.
So what happens then now that the stock price is below 1 again?

Option 1: Another r/s ?
- It’s not possible for them to do another r/s in such short period of time after the previous r/s. (I’m not an expert about this and someone did mention about the reasons behind it which I can’t remember, so for those who actually have connection to a broker, you can confirm it when them, something to do with vote or duration etc…)
Option 2: Delisted?
- The company will receive another letter for being out of compliance, with a duration of months before it gets delisted if it doesn’t comply to the 1 dollar rule. So in this case, in short period of time, if the company does nothing about it, it gets delisted but recently the company sells milllions of shares to private institutions. So why would they even buy shares from a company that is going to get delisted if that’s the case?
Option 3: Buyout
- There is a duration until the company gets delisted so if a buyout occurs before then, it doesn’t really matter whether it is in compliance or not. So some might say that buyout would take months after the announcement is made. Let me ask you one thing, what will happen if the buyout announcement is made? The stock price will shoot up and it will get into compliance in an instant.
Of course, there are many out that saying that this is a scam company etc.. So, remember to do your own DD, and decide based on your own reasoning. We have no idea where the dip will be and 11 Nov 2022 is the earnings report date so either direction is possible upon that release.
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Xiaoxi_penguin
“Dad, can I grow taller?” Well, it’s your greed talking “But mum says I cant grow any shorter” *looks at shoe pad*
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