IMAI added yesterday another 16.95% jump to its record this week and closed the trading at $0.0152. The 14.3 million volume also confirmed the shares are holding the attention, but as there are no news or PRs whatsoever, it is questionable for how long.
There are no current IMAI SEC filings, only a quarter report has been published on the OTC markets page. According to it, the largest part of the company’s assets, or $16.2 million, are in the form of investments in subsidiaries. Cash is only $38,000 and the total liabilities are about $278,000.
For day traders, it is probably important to point out that IMAI have been real masters in diluting their shareholders during the year ended this June. In that period of time, the number of shares outstanding bubbled from 8.3 million to 164.57 million, whereby most of that shares have not been issued for cash, but upon conversion of debt and preferred stock, as well as for the acquisition of some companies.
These companies are an acquired in March medical marijuana company and an acquired in January Internet loan/cash advance provider, both purchased in all stock transactions. The result was 115 million new IMAI shares that have not flooded the market yet, maybe predicting more unquantifiable losses of value to come.
IMAI do not explain what kind of assets the two new subsidiaries have that could be worth over $16 million, so that the market cap of $2.5 million looks unrealistic on the lack of anything to justify it.
