35% and its traded volume flew over 11 million shares. But how is that possible after ADHC was on the low trade the previous days? The answer is only one – promotions.Yesterday, the stock was promoted heavily by JumpingPennyStocks.com and OTCReporter, pointing out that a merger for ACTC was already on the run. The total compensation for the campaign cost $250.000, however, the paying party remained unknown. Yet, the promotions have certainly influenced ADHC stock price and it grabbed the climb at once. Now the question is how long it will continue?
In any case, American Diversified Holdings decided to ensure its market position by releasing a piece of positive news on its activities. Again yesterday, the company reported it has obtained a satisfactory financing to complete a merger of the cloud computing company Rebel Networks. Though, the transaction is yet to be completed “before the end of May, 2011”.
American Diversified Holdings Corporation develops a software platform for the Mobile Health Care Market. In the end of 2010, the company used to trade significantly higher than at present, however, after that the stock entered into a downtrend.[BANNER]
At the same time, the latest 10-Q report of the company looks disastrous. According to it, for the three months ended January 31, 2011 ADHC had no sales, while its expenses have notably increased. Historically, the company has financed its operations primarily through cash generated from the sale of its stock and loans. However, its working capital and stockholders’ deficiency has already exceeded $1 million.
Based on these financials, the management states the future operation of American Diversified Holdings depends upon additional capital or profitable operations, though any additional financing will result in dilution to existing shareholders, which would in turn reduce the share price of earlier issued shares. It may also result in the loss of their entire investment.
