According to the promotional disclosure from Friday, a stock promoter has received $85,000 to advertise VIDA stock to investors, however, as the term for these advertising services has expired and as there seems to be no other reason for VIDA to trade at that levels currently, it is questionable what the follow-up action can be.
This was the second promotion for this month. The first one took place at the beginning of the month, was conducted by a different promoter and the compensation was substantially lower, “only” $20,000 were paid by a third party for the favorable VIDA coverage. The other thing that made the difference was that Friday’s promotion actually paid out.
VIDA share price surged 163.89% and closed near its levels from the beginning of July, at $0.095 for a share and got a volume of 3.33 million shares traded. Also on Friday, the company announced in a press release two new production assignments for its video content services.
Despite of that “big news”, the promotion looks more like the driving force behind the share price surge. The latest annual report of VIDA did not suggest that more sales will bring more profits. Over the year ended this June, the revenues and the operating margin have improved, but the company is still unprofitable and is facing a liquidity crisis with its heavily leveraged capital structure.
Nearly one and a half million dollars in convertible notes and notes payable are owed as a current liability at the end of June, and VIDA can make only round $165,000 available in short the repay the amounts due. In July, the company also stopped paying interests to the holders of the notes and the issue might get resolved in the best case through the conversion of the notes into stocks.
