After INKN announced to have received the exclusive rights to use and sub-license a patent-pending modular microfluidic system after the market closed on Friday, yesterday some stock promoters were also involved in the action to evoke as strong as possible market reaction. The notable results were a 16.67% higher close and a 2.15 million share volume for INKN stock.
The promoters did not receive any known cash compensation for marketing INKN share yesterday, but both of them disclose that they may be holding shares of the profiled companies that they could dump on the market after the promotion. Traders should in such cases always expect a sharp drop off after the promotional jump, especially for stocks like INKN, whose share price of $0.14 and market cap of $27 million appear already irrationally inflated in relation to the assets the company has.
According to the latest financial report of INKN, it has a minor amount of cash and $1.7 million in current debts. Almost half a million dollars of these short-term debts are in the form of convertible notes, on some of which the company is already in default. Without any revenues or marketable products, any sales estimates can hardly be made and thus staying in business will further depend on the sale of stocks or notes.
INKN focuses on the development of a nanotechnology platform, through which according to the management a number of nano-sized particles and devices with many applications can be manufactured. Though, the management has no concrete products or markets in mind, nor the cash to start commercial production in the near future.
