Go Solar USA, Inc. (PINK:GSLO) has been on the move after the firm announced they have signed a deal with the Chinese company Yosion to jointly develop a product called Apple Peel 520.
With sight set on the penetration of the US market, the product will have to be patented first. Go Solar and Yosion will be working to deliver a device which can upgrade Apple’s iPod Touch with mobile voice and text messaging capabilities. Initial manufacturing run for September has already been sold out.
The potential market for this Apple Peel 520 is 275 million iPod Touch owners. The upgrade is significantly less costly (around $60 a piece) than Apple’s iPhone and people still get a similar product. [BANNER]
The Pink Sheets listed GSLO doesn’t have much cash on hand, but they can use equity or debt instruments to get some funds. The release of a new product should make it even easier to raise cash from interested investors.
What looks weird on the balance sheet is half a million worth of promissory note, which was issued without collateral to one of the shareholders. The weird part is the company paid $7.5 million worth of stock just to cover $125 thousand in interest accrued on this note. Aside from this unusual debt, the balance sheet is only as leveraged as the 3 year old note makes it.
Stock price surged over 30% shortly after the deal was announced. The appreciation has paused by resistance at $0.75, indicating traders might want to see more proof of success from the financially weak Go Solar.
