while its traded volume has been increasing progressively. Yesterday, BKBO closed at $0.325 per share and managed to trade over 2 million shares for the day.The records show that in mid-November the company filed its 10-Q report, Then, on Nov 24 an invitation form by Backbone was filed to the otcmarkets website regarding the special meeting of the company’s securityholders. According to the announcement, “registered holders of common shares, preferred shares and options and warrants to acquire common shares at the close of business on November 30, 2010 will be entitled to vote at the special meeting” in favour of the Arrangement Agreement from Nov 8 BakBone to become a wholly owned subsidiary of Quest Software, Inc. Having reviewed the agreement, the company’s board of directors has approved it.[BANNER]
Most probably, that was the actual reason for the start of the high trade after the agreement was approved.
BakBone Software delivers complexity-reducing data protection technologies. Historically, the company has traded much lower, though since last month BKBO is moving up.
As already mentioned on hotstocked.com, about a month ago BKBO was climbing up again due to the same agreement with Quest, however, at that time the acquisition wasn’t closed yet. Apparently, now traders are even more enthusiastic about Bakbone and its optimistic projections. However, the company’s quarterly report is not much better than the previous one.
According to the latest 10-Q, revenues of Bakbone have increased, but its liabilities are still almost four times higher than its total assets and the stockholders’ equity has decreased. As of end-September, Bakbone had $5.6 million of cash and cash equivalents and $39.4 million in negative working capital. The management “expect to incur approximately $0.4 million in capital expenditures during the remainder of fiscal 2011”.
Due to the accumulated deficit of $238.4 million and the losses since inception, Bakbone should either search for additional financing, or find a way to get profitable. Otherwise, the company’s team may not be able to meet their capital requirements.
