Stratus Media Group Inc. (OTC:SMDI) owns, produces, promotes and operates live entertainment events. The stock of SMDI is not very liquid, but last Friday it managed to trade seven times the average.
SMDI closed 7.14% up at $0.75. However, most of the volume was generated on dips closer to $0.60. Trading stopped long before the markets closed.
On Jun. 29 the company announced an MMA event to be held in Oahu, Hawaii on August 27. The event is held by ProElite – a company recently acquired by SMDI.[BANNER]
This announcement doesn’t say what the financial benefit could be for SMDI, but a projection like that would be hard to make. At any rate, it was not the reason for the high volume on Friday.
The last time SMDI got a volume near Friday’s was on Jun. 20, when the company announced the closing of the acquisition of ProElite.
Hopefully, ProElite will change things around for SMDI. The last 10-Q of the company looks rather bad:
- No cash and $540,208 in total current assets
- $5.5 million in total current liabilities
- No revenue
- $1.6 million loss from operations for the quarter
If ProElite’s operations are indeed profitable, SMDI may want to make that known to shareholders soon. The financial situation they reported is hardly appealing or promising.
