In the last two trading sessions it has been confirmed that $0.95 per share is a price high enough for Takedown Entertainment Inc. (OTC:TKDN) stock. It puts a market cap of incredible $104.5 million on a company with $5,000 in total assets as of end-April 2011. The LOIs and an IR agreement look like the reason for the huge gains. 
TKDN has announced a number of Letters of Intent to acquire the distribution rights for various MMA fights over the last couple of months. The last to LOIs came out this week, and as seen on the chart TKDN share price climbed to $0.95. This was yesterday’s closing price, and has also formed as a level of resistance in the last trading sessions.
Yesterday, TKDN traded only 19,000, which is a much smaller trading volume than that of the preceding days, while the share price fell below $0.83. Those are maybe signals that today the direction of move of the share price might change. A Letter of Intent is nothing like a real binding agreement, and the company latest financial report does not reveal any fundamental base for the current valuation.
TKDN other 8-K filings reveal some more interesting facts, however. According to the latest one, on August 11, 2011 Takedown Entertainment signed a consulting agreement with Radius Consulting, Inc. which will now provide financial marketing services to the company, mainly though increasing the market awareness for the stock. Radius would receive a compensation of $2,500 each month over a period of 90 days.
The same filing says also that this July the company issued more than 1.5 Million shares of common stock for the settlement of two convertible loans. The conversion price was $0.75 per share. Prior to that, one of the two directors in the company’s Board of Directors acquired 60 Million shares of TKDN common stock from a former director for a total amount of $10,909. That director owns now 55% of the company, and must have already noticed the substantial value increase of his investment.
