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this will skyrocket huge
VTNL's financial situation is dire.
VTNL has borrowed about $800,000 last year, all of it payable with newly issued dilutive shares, at a huge discount.
During the nine months ended September 30, 2018, cash used in operating activities was $(791,637) compared to $(384,015) for the nine months ended September 30, 2017. The increase primarily resulted from an increase in convertible notes executed and from the fluctuation of the Company’s stock price which impacted the valuation of the derivative liabilities as well as the interest expense incurred on the convertible debt.
There's little point in owning shares in a company that is flat broke, has negligible sales, and is certain to dilute current (and future) shareholders into oblivion.
And then the company will have to borrow all over again to attempt, again, to launch a business, thus causing even more future dilution.
VTNL used to boast that they had "contacts" with vet offices, so they would be able to place several $$$ millions worth of pot-laced pet food in bo times at all. It didn't happen.
Then the CEO boasted of his most excellent sales team. Which hasn't made a single sale other than on-line purchases.
Then he annonced that he was "in the process of hiring" "200" reps, which collectively would generate $265 millions in sales withing 5 years.
There's no evidence that any rep has been actually signed on, and there were no sales attibutable to reps as of the last filing.
VTNL's 10-K is expected either at the begin of April, of around April 15 in case of a NT 10-K.
The company enjoyed working with Mr. Chan with the implementation of the Crypto currency business.
I predict there will be no expenses, and no revenues, that can be tracked back to the cryptocurrency "business".
Like many other things those PR quips are there only to help along the relentless dumping of newly issued shares. The was no plan to generate actual revenues.
The risk that concerns me the most in that the CEO lies a lot in his PRs.
He could plead he's merely completely incompetent and writes nonsense in every single one of his PRs.
A Reverse Split would make you lose 99% of your savvy $0.0001 VTNL Investments.
VTNL going completely out of business instead of staying a $7,000 annual sales company would hurt too.
A R/S would benefit VTNL lenders.
In the first 3 Qs of 2018, VTNL spent (and borrowed) $925,521.
All that debt is convertible -- and being converted right now- into billions of dilutive VTNL shares.
VTNL's Autorized Shares ceiling is 50,000,000,000 common shares.
They are dumping 12 million dilutive worthless PVSP shares ?
how exciting
From the July 2018 10-Q:
Stellar products by VTNL
...And no meaningful sales.
Lots of debt on the books, tho.
Since there's no sign of any issuance of shares to any reps, (except to the new director in charge of hiring other reps), in the financials, then no Rep has received any signing bonus yet. And no new sales have occured so far.
The $25K in restricted VTNL stock as a signing bonus is a very poor incentive. Restricted stock cannot easily be changed into common stock (and then into cash), and this requires an "Opinion Letter" from a lawyer, which costs $250 or so.
Besides, $25K of VTNL stock now might not be worth much after one year, if there's a Reverse Split in the meantime.
I smell big news coming for VTNL
You always do.
Their $9 million "supply contract", (to begin in Q2, 2018), morphed into a joint venture into developping a hemp soap. No word when sales will begin.
It’s time to sink or swim.
VTNL has been sinking for quite a while already.
It's the deliberate lies by the CEO I have problems with.
$771,773 paid to consultants, who were a big help, guiding the company into making $4,300 of sales.
All this is borrowed money, payable in worthless shares, discounted 50%.
A net transfer of money from the hapless shareholders pockets to the shylock lenders, with VTNL officers pocketing their rewards.
VTNL's Total Sharehoders' Deficit grew from ($959,890) to ($2,714,608) in the first 9 months of 2018...
Yes, they're about to launch an hemp-based shampoo for cats!
Don't worry, after 3 years of being unresponsive, the SEC will revoke the stock.
And then, bu-bye PVSP.
is insignificant longterm
That $38K might have to be written down. What is the shelf life for doggie treats ?
They do need a capital raise to ramp production and inventory.
Nope.
1) the company is already sitting on a mountain of unsold inventory;
If you look at the financials, VTNL is already sitting upon $38,332 of unsold inventory, cost.
During the first Quarter, VTNL ordered $20,000 of dog food, cost of which they sold $1000 worth (sales price).
Same for the second Quarter, they purchased $20,000 more of dog food (cost), and sold $2000 of it (sales price).
In the third quarter, they didn't buy any other useless inventory, and sold $1,300 from their existing stocks.
2) Raising more capital would be, and will be because it is of a certainty that VTNL will borrow more every Q, a disaster both for current and future VTNL shareholders.
Why ? Because the company has already a great deal of convertible debt on its books, all convertible at half of the lowest traded price of VTNL stock, thus at $0.00005 and under. Billions of new dilutive VTNL shares are already slated to be issued and dumped.
Of course lenders will insist on a Reverse Split before lending more,
which will seal the fate of all current shareholders.
----------------------------
Buy low, sell high ? How about buy at $0.0001 and see the SP drop to $0.0000001, split-adjusted ?
What dispensaries are selling VTNL?
From inference from their financials: none.
And no vet office either.
VTNL's total sales for the first 3 quarters of 2018 tote up to $4,309, which is consistent with online sales, and not many of those, due to the total lack of advertisement.
If you spend $771,773 on "consultants" for $4,000 of sales, you're doing wrong.
PVSP is Holding Company not an operating company.
It's not operating at all, you got that right.
Canalytix and Plaid Canary Corporation are two subsidiaries of Pervasip that operate in the emerging agricultural markets.
They are subsidiaries that aren't operating at all, in any market.
No employees, no operations, no revenues.
The operating results of these entities are consolidated and included in the consolidated financial statements of Pervasip.
No filings in the last 2 years.
Our value is related to the operating results of our subsidiaries, just like John Malone's Liberty Media and many others.
So, no value at all. Tanks for playing.
One word: dilution.
You cannot invest in penny stocks.
You can only gamble in penny stocks.
New Regulations on importing are forcing the Chinese factories to start paying royalties.
Asian manufacturers will pay royalties to Microsoft, not to Hop-On Inc.
VTNL is likely to announce a Reverse Split in 2019, which will finish off the destruction of all the equity value of its current hapless shareholders.
Another VTNL play might be to announce some kind of bogus "acquisition".
The merger will not add any value to the compant, but will be an excellent occasion to dump billions of worthless shares iunto a brand new crop of hapless shareholders.
I don't bash this stock because it is losing money, I bash it because its officers lie in their press releases.
The company's terrible performance (or lack thereof) cannot be blamed only on mere incompetence.
The only "news" I saw is that VNTL intends to dabble in crypto-Currency, maybe with a currency redeemable in cat food ?
Also, they make a big thing about the new law. You see, the status of hemp oil was iffy; you couldn't ship it by mail, among other thing…
All the "news" coming from the company have been lies, so far.
there is no reason for a 50,000,000,000 AS
But there is.
The company still owes $482,869 in convertible debt, at $0.00005 a share or less (half the lowest traded price).
That's already a lot of shares.
But furthermore their debt covenants obligates VTNL to keep an A/S sufficient to cover the conversions, ten times over.
Those last resort lenders have been burned so many times with their deadbeats clients, they take no chances.
there’s really no point in selling into the .0001’s
But that means that a lot of people are holding HPNN shares that they know to be worthless.
If the stock was to hit $0.0002, for any reason, all those people would rush to get rid of their shares, and the price would slink back to $0.0001 in record time...
Their "$9 million" "supply contract" scheduled for the "second quarter" seems to have receeded towards 2019 and beyond.
Their 'exclusive distribution deal" withg a soap company seems to have morphed into a joint venture to produce some hemp oil soap.
Don't forget that VTNL is NOT a manufacturer, no matter how many times they claim it.
What worries me (apart the high levels of convertible debt) is the heaps of money that the company seems to lavish on "consultants".
VTNL spent $1,094,256 in "consulting fees" in 2017 (over $3,000 of sales),
and has spent $771,773 in consulting fees so fat this year, with YTD sales of … $4,309 of dog food.
I wonder what's their average on-line order; if it's $150 per order, then they had less than 50 orders so far this year. Not particularly impressive.
For a company that stated the year 2018 claiming that they had a big fat $240,000 order, last December.
Bunch of liars.
Prices this low are a steal.
Yes, one can sell billions of worthless shares, never creating any value for the hapless shareholders.
He also bragged that Samsung was paying HPNN over Hop-On's unique patent over cell phone design.
The sum total of all Samsung payments to HPNN turned out to be … $0.
When a subpenny company deep in convertible debt reaches $0.0001,
it can still lift the sp a little with the usual fluff PRs, say by repeating that the company expects to make $265 millions in 5 years, or other such pie-in-the-sky numbers.
But the favorite tactic is the Reverse Split. VTNL stock becomes (temporarily) VTNLE, and 5000 old VTNL shares become one new VTNLE shares.
As the new stock price starts tanking immediately, the old shareholders, already down 90% or oro, lose everything, and a new crop of hapless shareholders gets recruited to be fleeced.
Another possibility, with the R/S, would be the announcement of a dummy acquisition.
Thats a favorite tactics. Penniless penny stock announce a (cashless) "acquistion", excited shareholders flock to the stock, and when all is said and done, the new entity is still worthless and the share price is right back to $0.0001, albeit billions of new dilutive shares have been dumped by the debt holders meanwahile, which was the entire purpose of the exercice.
Or, VTNL could start to sell hemp oil pet treatsfor reals this time.
That one is quite unlikely.
Factoring out receivables is a very costly move for any company.
The factor takes a big cut of any sale.
The factor certain to make money, while the company loses money.
Limecom receivables were already factored out when Cuentas "acquired" it.
The only negative factor I have seen here is they have dumped 385,657,380 shares to the market
The red flags you missed:
-The company isn't making any significant sales. ($1300 last Q)
-The company's debt is growing. ($500,000 of convertible debt).
-$190,000 operating loss last Q.
-The company is deep into its death spiral. As the share price tanks, more shares have to be issued to pay off conversion, and the glut of new dilutive shares being dumped on the market causes the price to tank again.
-The company CEO lies a lot. His forward-looking statements always turn up to be straight lies.
A few of the most recent lies:
-The company claim to be a manufacturer. It isn't.
-The company repeated announcement that it was "in the process" of hiring "200" reps.
-The company claim that it has $9,0000,000 in supply contracts.
-The company claim that it missed it $1.5M Q2 sales target (by $1.5M) because of the California forest fires.
The most recent dubious claim that the company is that it will sell both pot-laced dog food, and meddle in cryptocurreny.
5 years from now if you dont sell you make a profit.
Not if the company continues to "misperform".
Not if the company continues to borrow far in excess of its revenues.
Not if the company performas Reverse Split and then dilutes itself right back to $0.0001.
Not if the company finally cease to file financials, and about 3 years later its stock get cancelled by the SEC.
You see, subpennies never declare bankruptcy or shut down officially. They just fade extremely slowly into oblivion.
The Re-Medical has developed and isolated the benefits of cannabis and other vital plant extracts for best patient care.
OK, I'll bite: how many searchers work for Re-Medical, and how come their combined salaries appear as $0 on HPNN financials, such as they are ?
Mega-dilution from convertible debt has started in Earnest.
In addition of not selling do food, (because of the California brush fires),
VTNL will also not be mining cryprocurrencies (with the computers they don't have),
Pity PVSP has no sales and no money.