The fact that Adama Technologies has not commenced any operation yet since its inception in 2007 did not seem to disturb traders yesterday. An official confirmation for the announced in a press release planned merger with a privately-held clean tech company based in Israel was not needed. The stock closed at $0.0103, which represented an almost 348% increase, and recorded unprecedented for its trading history volume of 24.7 million shares traded.
One stock promotion for ADAC was officially disclosed and the promoter did not declare to have received cash compensation. Further stock promoters have also included ADAC in their advertising newsletters.
Yesterday’s press release looks extremely weird as compared to the latest 10-Q of the company, filed last Monday. “Adama revenue projection of $8 million in 2011” stated in the PR and the “$60,000,000 patented MBS technology” described in detail on ADAC website sound like a fiction. The company has never has a single dollar revenue, has $464 in the bank as the only asset and has no developed technology or product through which any revenues may come from in the near future.
In October 2008, Adama acquired an Exclusive Brownfield License Agreement from another company for the so called MBS Process for remediating Brownfield and Redevelopment Sites. In exchange for that license, Adama issued to the seller 8.89 million shares of its common stock and took the obligation to pay one million dollars within twelve months. As of this June, Adama has paid $150,000 from that amount and currently the only thing that reminds about the MBS “technology” are the remaining $850,000 in ADAC liabilities.
The previous invention was acquired by ADAC in 2007 for $60,000 and was named “Security system for mobile vehicles, trucks and shipping containers”. A patent was never received and the company abandoned all activities related to that technology. Last year, ADAC recorded an impairment loss for the full value of the patent.
