Media Technologies Inc. (OTC:MDTC) got its heaviest trading volume yesterday which also raised the share price of the stock. Latest news is from last month and it is the company’s quarter report that reveals only minor revenues and large debts. 
MDTC is trading since mid-November, but is already gaining popularity on the market after over 131,500 shares got traded in the last trading session – the highest trading volume so far. The session closed also with a 8.33% increase in the share price at $1.30.
The company does not have any recent press releases and its 10-Q for the three and nine months ending September 30, 2011 is the only source of information. According to that report, MDTC provides high speed broadband Internet services since 2007, and this year it acquired two other companies – one provides advertisement insertion systems for cable television providers, the other is an Internet content provider.
Media Technologies Inc. financial and operational state is not very promising so far, however. Revenues have increased 25.4% in the last quarter due to the acquisitions, but still amount only $49,000 for the three months. At the same time, MDTC has large debts and a working capital deficit of $3 million, $2,135,000 of which due under convertible notes payable.
Recently, the payments, or respectively the conversion, have been postponed as MDTC reached agreements with most of the holders of the notes to extend the maturity date to June 30, 2012. Respectively, the notes will not be converted until that date, as well.
Yet, management does not expect the cash from revenues would be sufficient to cover the expenses, not to speak about the debts, and is thus in search of additional capital.
