volume remains very impressive. Yesterday, CPYE lost 6.83% of its market price and the volume exceeded 3 million shares traded.Apparently, investors’ encouragement didn’t last for long and they started dumping their shares.
This fact looks quite astonishing, following the latest news about Conspiracy Entertainment. Over the past week, the company has published positive announcements about its business and the latest one came up just yesterday.
According to it, CPYE has entered into a distribution agreement with Fillpoint SVG Distribution, Inc. for the two new title releases, Personal Fitness for Men and Personal Fitness for Women.
However, instead of pushing the stock up, it seems that the good news didn’t interest traders that much and CPYE fell down.[BANNER]
Conspiracy Entertainment Holdings, Inc. is the holding company of Conspiracy Entertainment Corporation, a developer of entertainment software. There was no news about the company through the whole September, though in August CPYE reported huge revenues and got supported by a couple of promotions.
The quarterly reports of Conspiracy Entertainment do contain increased revenues, though, they also contain liabilities about 50% higher than the total assets. Meanwhile, the stockholders’ equity of CPYE has decreased and the company has no sufficient cash to cover the working capital deficiency of over $8 million and the long-term debt of over $2 million.
On Oct 25 this year, Conspiracy Entertainment entered into a subscription agreement with certain subscribers. Pursuant to the agreement, “the Company sold the subscribers $210,000 principal amount of promissory notes and issued the Subscribers 5,250,000 Class A Warrants”. Following the closing, there were 25,869,701 outstanding shares of CPYE’s common stock. The notes mature one year from the date of the issuance and will accrue 14% interest.
However, based on the company’s financials, its management team claims that “If we are unable to obtain additional financing, we will likely be required to curtail our marketing and development plans”.
