Stock price of Modern Mobility Aids Inc. (OTC:MDRM) has been unpredictable during the last days. After a price fall on Monday, 
yesterday it jumped 27.19% and the traded volume of MDRM got double. So, what’s next today?
Looks like the only reasonable explanation on the price change appears to be the latest news by Modern Mobility.
On Monday, MDRM announced that it has revised an agreement to acquire Lumigene Technologies Inc. and expected to complete the transaction by March 31, this year. A day after being reported, the news pushed up MDRM stock price 6.76%, though this week it crashed down again.
Anxious to get back on track, Modern Mobility filed another announcement yesterday. According to it, its Chairman and CEO, Mohamed Karatella, has returned 90 million shares of MDRM to the company’s treasury for the purpose of decreasing the number of MDRM”s outstanding shares to 105.48 million.
Investors got inspired by the increasing share value and MDRM broke up the loss again. Though, this time the company decided to secure the gain by promotions.
The campaign was held yesterday when MDRM got promoted for a compensation of $25,000. Whether the promotion will fuel up the climb is just about to be seen.[BANNER]
Unfortunately, the financials of Modern Mobility are not promising at all. As of December 31, 2011 the company’s total liabilities were much higher than its assets and the net loss has increased. In addition, both the stockholders’ deficit and the deficit accumulated during the development stage flew up.
Due to the company’s operating losses and working capital deficiency, MDRM must raise additional funds to initiate or acquire a business and to fund its continued operations. However, while the revenues are missing, the company may not be successful in raising additional funds or achieving profitable operations.
The management claims that even if they raise additional funds through the sale of securities or loans from the company’s directors or financial institutions, their cash needs could be greater than anticipated.
