Intertainment Media Inc. (CVE:INT) (PINK:ITMTF) has announced the company is moving to a higher tier OTC exchange – the OTCQX.
The news is of questionable worth, although this basically denotes progress in quality of the stock. The move to a slightly better exchange means more transparency for shareholders, but it doesn’t automatically make the company better. This improvement could possibly help to move the stock price though. INT recently traded vaguely and rolled down more than 7% yesterday, despite the casual positive update on user engagement with the company’s real time translator system.
Announcements of Ortsbo user count increase no longer seem to excite the masses. The company’s been actively publishing such reports since the launch of the application in beta version and comparing it to google and facebook growth rates over their first year.
Intertainment still has no revenues from the application. The company relies on selling equity to gather up working capital. However, they turned down the proposal to put their subsidiary onto the stock market as an autonomous entity, which could have saved them the effort of sustaining the share price through continuous updates of questionable worth.
The big stock price run-up in April was a result of marketing, not of fundamental changes. The price is now consolidating near a support at $1.25. Recently, the volume wasn’t any special so a breakdown is unlikely at least in the coming few trading sessions.
Following the need to secure more working capital, the company has recently proposed warrants for sale. On May 2 Intertainment received commitments to complete a private placement for these special warrants, valued at $48 million. The dilution potential of this offering is astounding 52%.
