ABTG closed the session at $0.099 on a trading volume of 2.93 million shares and with a 5.71% decrease in the closing price from Wednesday. During the day, the share price fell to the $0.08 support level from October last year and the trading alerts yesterday were maybe one of the reasons for the exploding volume.
Unlike last year, it looks like this year Ambient will not wait for the promoters to raise the share price of its stock. Yesterday, the company filed with the SEC that a reverse stock split has been approved by its majority stockholder Vicis Capital Master Fund. The Board of Directors has now the discretion to decide if and when to implement the reverse stock split by the end of this year and at a ratio of between 1 for 30 and 1 for 100.
Management points out the desired listing on the NASDAQ as the main reason for the reverse stock split, although President and CEO is quite realistic, saying that this action may increase the likelihood that ABTG stock meets the minimum bid price requirement of $4 per share. ABTG share price barely reached 15 cents lastly, and this on a stock promotion, and investors are also aware that a reverse stock split changes nothing about the fundamentals of a company.
Thus, if Ambient truly wants to become a more attractive investment option, it should try to do this by first of all expanding its customer base, for which the received in January additional $5 million equity investment from Vicis Capital Master Fund should help as well. So far the company has secured a contract with only one client for its smart grid communication products and services, respectively all the revenues received so far come from that single client, and respectively the growth of Ambient’s business depends entirely on the growth of its sole customer.
