approximately 9% on the market and its traded volume jumped up.Apparently, the climb was due to the promotional campaign that started just yesterday and pumped up MDAV. The stock was promoted 4 times during the day by different promotional websites and the compensation for the campaign totaled $35.000. Though, it is not certain if this amount was paid by Pan Asian Media, or by another paying party that wasn’t revealed.
Davi Luxury Brand Group, Inc., formerly Dafoe Corp., is a development-stage company engaged in the acquisition and exploration of mineral properties. Last year, the company lost all of the mineral rights it has owned and as of end-September Davi did not own or leased any property. After the company purchased some trade names and logos in December, it started to develop and distribute skincare products marketed under the names and logos it has acquired.
At the beginning of this year, MDAV reached the price of $2.60 per share, however, after that the stock moved down. Now the question is, will it jump over $1.00, or will it get back down again? That’s just about to be seen.[BANNER]
On Monday, Davi filed its quarterly report, which however, didn’t look much promising. As of December 31, 2010, the company had $425 of current assets and a working capital deficit of approximately $21,000. In January 2011, MDAV raised $575 thousand from the sale of 1,150,000 shares of its common stock (at a price of $0.50 per share) to two foreign investors. The management expect the money to be sufficient to fund all of the product development costs, though the company depends on the amount of revenues from its sales agreements. However, if the revenues turn to be less than projected, the team will have to raise additional capital.
The only problem here is that for Davi, a company with a business plan but no products and limited operations, it will be difficult to obtain financing through the issuance of equity or debt securities because the stockholders may experience additional dilution. While at the same time, if the financing is not available, the company will have to curtail or cease operations.
