Last Wednesday, Skinny Nutritional Corp. (OTC:SKNY) made a huge step towards cracking the MA (50) graph. That is why, investors’ main focus yesterday was on how SKNY would perform. For better or worse, SKNY failed to live up to any bullish expectations. Instead, the company’s shares made a minor step back.
SKNY shares went down 5 pips, or 2.58%, to $0.0189 per share, which is still its second highest close for the last three weeks or so. Shifting in excess of 2.089 million shares, SKNY marked an 82% improvement over the daily average trading volume. Thus, traders’ hopes for a new uptrend were pretty much dealt a blow, at least for the time being.
Last Tuesday, SKNY announced it had singed an exclusive product manufacturing and distribution agreement with Cliffstar, LLc. The latter is a subsidiary of Cott Corporation and the agreement was revealed to have entered into force as of Jan. 31, 2012. As set out in the contract, Cliffstar has been given the exclusive right and license to use SKNY’s Skinny Water trademark within the United States and Canada. While the news failed to yield any significant results in terms of SKNY’s market value, it definitely caught investors’ attention. As a result, SKNY hit a six-month record volume of 9.27 million.
Earlier this month, SKNY informed the general public that it had shifted $1.25 million, or 64% of its APs, to Ironridge Global Partners, LLC – a private equity provider of financial solutions and flexible capital – against 65.1 million common shares. Thus, SKNY has now dramatically reduced its outstanding debt. However, with zero cash reserves, a working capital deficit of $2.25 million and a net quarterly loss of $2.47 million, it is by far not clear how exactly the creators of the zero-calorie enhanced Skinny Water intend to turn profitable in the foreseeable future.
