On the news about the company’s new CEO and on the promotional e-mails, the shares of CLKZ got extraordinary volume and closed the market yesterday at $0.0264 with a 76% jump up from the previous night close. About 2.2 million shares were traded in a day and some technical indicators show that there could be further upside potential. Still, it looks like the new CEO, proclaimed by the promoters as an expert in raising cash, will not only have to raise cash in the case of CLKZ, but also accomplish a fundamental change in the business to support stable appreciation for the share price.
Short-term, outlooks are also not that bright. Yesterday’s promotions have been compensated with $25,000, paid by a third party for a one-day awareness program. The same promoter promoted CLKZ a month ago and got $15,000, again from a third party for a one-day campaign. As seen on the chart, on the day of that particular newsletter CLKZ got its heaviest sell off ever and is going down since then.
Moreover, corresponding to Clicker, Inc. worsening operational results and lack of any substantial assets, the raised last month $63,000 through the issuance of convertible debentures did come at the most favorable terms. One of the debentures is convertible any time into shares of common stock at a conversion price equal to the lesser of 35% of the lowest closing price in the 10 days prior to the conversion and a fixed price of $0.00875 per share. The conversion price for the other debenture is equal to 50% of the average of the three lowest closing bid prices during the 10 trading days preceding the conversion.
What sounds good at first sight may not be good actually, and may even imply accelerated rates of dilution for CLKZ shareholders. Both investors have agreed to restrict the debt conversion such as each of them should not hold more than 4.99% of the company’s shares after the conversion. At the end of November, CLKZ had 61.5 million outstanding shares, and 300 million authorized for issuance.
