Three months after the promotional campaign of Diamant Art Corp. (OTC:DIAAF) stock expired, the stock is now barely worth one quarter of its promotional peak. Yet, shortly after the company cleared the “Caveat Emptor” status it had been awarded with as a side effect of the promotions, the alerts on DIAAF are back again. 
Yesterday evening several stock promoting websites have featured DIAAF as a volume alert on their watch lists for today’s session. DIAAF trades in a channel recently and yesterday it closed at $0.042 without a change in the closing price and on a volume of 4.3 million shares, or less than the 30-day average. DIAAF promoters have been previously compensated at least $45,000 by a third party, whereby this third party was, or still is, possibly a shareholder of DIAAF. That coverage has already expired as the promotions took place in end-January this year.
DIAAF share price surged to 15 cents during that promotional campaign, but the company got also the “Caveat Emptor” market tier as the the promotions looked suspicious to the OTC market regulators. Currently, DIAAF has filed its latest quarter report and has been upgraded to the “Current Information” tier. At the same time, DIAAF has officially de-registered its securities with the SEC and has thus no longer the obligation to file financial reports with the Commission.
Diamant Art Corp. claims to have two business segments: the T&R technology business that provides product management and security solutions; and the Artagraph business that makes replications of oil paintings using a proprietary process. The unaudited quarter report shows revenues of almost $1.6 million for the three months ended February 2011 and net income of over $700,000.
Though, DIAAF has also outstanding notes for over $4.5 million. The acquisition of T&R International B.V. in December 2010 was paid with a note for $1.5 million, secured by all of the assets of Think &React International Inc., DIAAF newly-formed subsidiary that acquired the T&R business. In March 2011, the company issued 87.1 million shares of common stock to satisfy accrued interest and principal for $87,100 on certain other 10% notes payable. DIAAF is already in default on that notes.
