AUGT closed at $1.80, 13.4% down from Friday’s close on a volume of about 478,000 shares traded. Over a day, the value added after the financing transaction from the end of last month got almost completely lost. That probably reflects to some extent the fact that the stock is highly overvalued in relation to the sales the company is making and the fact that the losses are growing on a year-over-year basis.
AUGT obviously wanted to keep in secret the private placement from the end of August, as no press releases related to that issue have been made, and according to the 8-k filing the company did not engage in any kind of advertising events to market the shares The offering was made to a limited number of “accredited investors”, who purchased 2 million units of AUGT securities.
Each unit consists of one common share and a warrant to purchase one-half of a share. Thus, a total of 2 million shares and 1 million warrants have been issued and according to the SEC regulations none of the shares have been registered. AUGT share price surged straight up on the filing, although the $2 million raised will be enough as to cover the working capital deficit and although the shares were offered at a substantial discount from the market price.
On the missing fundamentals, it is not known if the rise can continue. Moreover, some investor forum users attempted on Friday to create the impression that paid and possibly illegal pumping for the stock is being done, or has been done previously when the company’s name was still Modavox, Inc.
