volume rose by approximately 102 million shared traded.The most probable reason for the stock jump appears to be the news that came up just yesterday. According to the announcement, Flint Telecom created a new mobile payments infrastructure, allowing registered users to transfer money and perform other financial transactions from their cell phones. Vincent Browne, Chairman and CEO of the company, is highly optimistic about the new method and the future revenues of Flint.
Being published, the news immediately struck investors and FLTTE stock price started to rise.[BANNER]
Flint Telecom Group Inc. is a Telecoms Technology Organization with a portfolio of companies that deliver next-generation IP communications products and services. Due to a positive announcement, last month FLTTE stock hit its highest trading volume for the past ten years, and yesterday it managed to even double it.
As already mentioned on hotstocked.com, in the beginning of October the company entered into a merger agreement with two other companies in order to expand its portfolio and gain new markets. Flint has agreed to pay for the acquisition with 600,000 of its convertible preferred stock, half of that amount to be issued on the closing date. It looks like along with the business expansion, Flint shareholders may also get their ownership in the company massively diluted. Only the first portion of the preferred stock shares can be converted into up to 478 million new shares of common stock at a 25% discount to an average market price estimate at the time of the conversion.
As of end-June, Flint has over 8 times more current liabilities than current assets and the losses continue. Besides, in the last fiscal year the net loss doubled and reached nearly $29 million.
Now the only thing left for Flint is to rely on its new programs and to hope for the projected revenues.
