What prevented Emax Holdings Corp (PINK:EMXC) from continuing its glorious run on the charts? Ironically enough, a new press release.
Prior to yesterday’s session, EMXC stock had registered six stunning performances (out of seven sessions) on the stock market. As a result, its market value recorded a cumulative surge of 266%, rallying to its mid-February level of $0.0011 per share.
Yesterday, this nice momentum was brought to a quite unexpected end. A new corporate update surfaced in the morning. Instead of giving EMXC stock a further boost, it did just the opposite. By the time the session came to a close, EMXC shares lost 18% in value, clocking in at $0.0009 per share. The price decline, however, happened on a volume spike as almost 180 million shares of EMXC. The latter is way higher than the daily average trading volume of 24 million.
The press release mentioned above dealt with a merger agreement that had just entered into force between EMXC’s subsidiary and another enterprise. As it is, the subsidiary in question has been acquired by Mindix Corp (PINK:MPIX) in a transaction worth 400 million shares at $0.10 per share. Now, EMXC stockholders are expected to receive one MPIX share for every 32 EMXC shares they posses.
Emax Holdings Corp occupies the multimedia and family entertainment industry by offering wholesale distribution of CDs, DVDs, etc. What is more important, however, is EMXC’s dark reporting status. The company has not filed a decent financial report for more than 18 months now. The latest ‘current’ document is an unaudited balance sheet for 2009. Unless managers come up with some fresh and newly-audited financials, they will most probably continue to struggle to gain investors’ trust in the foreseeable future.
