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GLYE, +38% on low volume, bouncing off yearly low.
This bad boys up over 30% in 2 days and not a word! Where is everyone at?
Ill be the first to admit I'm incredibly surprised how well this traded today. I wasnt expecting a close anywhere near 5. This showed a lot of strength and support at .04. A lot of flippers and traders were flushed out.
I do, however, fear that we will be stuck in limbo in the 4s and 5s untill quality news or updated positive fins come out.
Today showed that this is still a strong stock and the fins were only a hiccup in the long term.
The buying pressure was letting off to begin with. Couple that with the fins being all sorts of fubar and even less people will be buying. The longer it takes for something material to happen the more it will drop. I'll be waiting to scoop up more!
This is what concerns me the most. I found this in one of cdnl filings. It has Kevin Jones listed as the:President, Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary, Director, and greater than 10% holder of common stock.
No wonder he's messing up the fins and always submitting late. Hes doing the jobs of 7 people! management is him and when he stated management found accounting mistakes he really just ment himself. But who knows? Maybe it was found during a review of the company's status during the Chinese deal. Perhaps that explains why they want to put members on the board, there's currently only 1!
Of course it is,I'm not claiming to know for certain, just stating that I have a very real concern and those are them. We will find out tomorrow I suppose...
I'm more concerned with this being halted. I'm sure the SEC will have some questions for them. This wasn't a small error, they understated millions of dollars in liabilities and took a year to acknowledge it. I'm hoping for the best but I dont see how this blows over easily, as just a accounting error. If they knew before the deals were made and waited to realese until the pps went up then thats shady. Best case is they found this out when going over the financials with the Chinese but still came to a deal. Worst case, they made the deal based off incorrect numbers and the Chinese back out. Or they get halted, say they are going private, delist and sell the company to the Chinese.
Perhaps they realized that they have been making huge mistakes and were in more trouble than originally realized.
That would explain the sale of majority ownership of their company. What's important is whether or not the deal with the Chinese was based on these updated numbers or off the erroneous numbers. Regardless, they made some pretty rediculous mistakes and I expect the share price to plummet in the short term.
Only thing that will save this now is proof of the Chinese deal going through.
I'm liking the huge buys that are comming in the mid 5s. Handfull of people are loading heavy up here, almost as if it was walked down here for this very reason.
Nobody should be surprised to see this. This is how this stock trades day in and day out. Shoots up in the morning, then a sharp drop followed by a walk back up. The MMS are loading shares cheap and then selling them high. Rinse and repeat.
Shorts don't drive the price down. That's always the excuse when the pps starts dropping. When shorts cover there should be an increase in buying, not selling. They sell the shares short and buy them back at the lower price. This is just LOW volume and selling into the bid.
Looks like NITE is boxing it in now. I Think they lost control briefly and now is trying to walk it back up.
CDNLChinese company purchasing 51% of the shares at .104. The shares are RESTRICTED!!
I completely agree with your post. However, I think that there is a silver lining for the technical traders/investors. We finally managed to close above .06, which up till this point was very difficult to do. Furthermore, we didn't fall through 6 today even though we gaped up. Hopefully 6 will become as strong of a support level as it was a resistance. The volume spike eod will also help.
But you're definitely correct. Some will only see the red peak at the top of a uptrend and stay on the sidelines as a result.
Perhaps the MMS are keeping it down for a reason. They are manipulating it like crazy but look at what a happening as a result. There has been millions of shares accumulated from the mid 2s all the way up to 7. Over 3 million traded today all over 6. It's as if they are building a base of support a little at a time to mitigate sell offs. Sooner or later they will stop holding it down and we will see the results.
Let them walk it down a bit. All it's doing is giving us slow steady gains while resetting the RSI for more upwards movement.
I agree, NITE has been all over this for a while now. Probably got some flippers to stop out or cut losses after the drop from 7.
None of it really matters though. If the volume stays the way it is then this is not going anywhere today.
If anyone is concerned about the Available Shares (AS) increasing and is worried about dilution then read this article.
investopedia
Available Shares and Outstanding Shares are not the same thing and the AS cannot be used as is to dilute. The AS must be converted to OS before they can be used.
Often, companies will increase the AS to protect against hostile takeovers. However, when pairing the AS increase with news that the Chinese subsidiary is purchasing 51% of the stock, one could reasonably deduce that the majority of the OS is already owned and they wouldn't be able to sell 51% of the stock with the current share structure. In other words, they are probably increasing the AS to have the amount of shares needed to follow through with the terms of the joint venture.
Another possible explanation for the increase is in the 8-k. It clearly states that every one of the shares being purchased by the Chinese subsidiary is RESTRICTED.
RESTRICTED SHARES CANNOT BE USED FOR ANYTHING UNTIL THE SEC GIVES APPROVAL. PURCHASING 7.5 MILLION WORTH OF RESTRICTED STOCK IS A HUGE RISK FOR THE PURCHASER AND SHOWS THE VALUE THAT THEY BELIEVE CDNL HAS.
CDNL would have to increase the AS to issue RESTRICTED shares to the Chinese. They cant take them from the OS without buying them back first.
Educate yourselves before you listen to other people. In your every day life and especially here. Not everyone has the values you may have and will let greed control them and then do whatever they have to do to get your money. I recommend reading through post made to other boards by people who post negativity.
Thank you, that was my first post here. I heard about this stock from small cap networks emails about a month ago. Got in under .02. I didn't know a lot of details but had a general understanding of what had going for it. In all honesty, I just really think this company has a lot of potential and I respect what it is they do. Today's PR only solidified my outlook. That said, it irritates me when people try to manipulate others with misinformation. Everything we need to know is in the 8k and its as good as gold to me. I'll be around here more.
Read sections F, G, and H on page 6 of the 8k.
Plainly states that the shares are for the purchasers investment acct, is aware that they can't sell any shares untill they become registered and can bare the financial risk of taking a loss on 51% of the shares, and is highly knowledgeable in regards to investing.
That doesn't translate into dilution to me.
Looks like they just want majority share
Would a reverse split raise the pps up well over the requirements to uplist? If so, would a RS be a good thing? It seems like it would prevent manipulation of share prices by the MMS by putting it in a healthier trading environment.
Just curious, don't know much about splits
Paying off the debt will send the pps sky high. MMS are toying with the share price and there is some light dilution. I think that's why the Chinese company is purchasing the stock at a higher value. It'll get rid of any short positions, possibly result in a squeeze if we are lucky, as well as end any/all dilution. I truly believe that this is a penny stock worth holding long. Or at least until 2nd or 3rd qtr 2016.
I'm in at .0197 and am looking forward to what lies ahead. Glta
Paying off the debt will send the pps sky high. MMS are toying with the share price and there is some light dilution. I think that's why the Chinese company is purchasing the stock at a higher value. It'll get rid of any short positions, possibly result in a squeeze if we are lucky, as well as end any/all dilution. I truly believe that this is a penny stock worth holding long. Or at least until 2nd or 3rd qtr 2016.
I'm in at .0197 and am looking forward to what lies ahead. Glta
Yeah, not often that a company agrees to pay double the current pps to acquire the majority shares. Big hint there...
BOOM TIME COMETH[url][/url][tag]http://www.otcmarkets.com/stock/CDNL/news[/tag]
CDNL up 28% volume spike today. RSI entering power zone and huge accumulation. Moving up easily. Great news yesterday!follow up pr will send this sky high.
CTLE, 3S UP!!
CTLE 7MIL 2S LEFT
CTLE 2s getting eaten up
I Imagine they will say they are filing late due to the recent sales of products and wanting those reflected in the numbers. Then, they will have a PR when they do file saying that they are all caught up and SEC compliant, which will result in another nice PPS boost.
"E" Added To Stock Ticker Symbol
When a company that trades on the Nasdaq Stock Market or the Over-the-Counter Bulletin Board (OTCBB) falls behind in its reporting obligations with the SEC, the letter "E" is appended at the end of the company's stock ticker symbol. New York Stock Exchange-listed companies that are late in filing required reports to the SEC have the initials "LF" added to the end of their stock ticker symbol.
Markets have different approaches to companies that don't file required reports in a timely manner, or that file incomplete reports. For instance, on the OTCBB, after the "E" is added, the company is given a "grace period" to submit a complete report, typically 30 calendar days for U.S. companies and 60 calendar days for most U.S. banks and non-U.S. companies. If the company files complete required reports during the grace period, the "E" will be removed; if it does not, the company's stock symbol will be removed from trading on the OTCBB.
8.5 billion OS...
CDNL NEWS OUT!
CDNL====you're welcome
I thought you said it was going to be announced by last Friday at the latest. Why did urbf lie to you?
Correlate the PPS with news of lawsuit settlements over the past two years. Why has it gone from over .05 to .0001 if the patent infringement suits are worth anything. Oh wait, it's because they don't disclose the results and then turn around and increase the As and os. THIS IS A PUMP AND DUMP OLAIN AND SIMPLE. GLTU
It obviously costs less to pay the infringement fines then to buyout the company. Why else would multiple companies infringe the pattents? What a joke. You probably got in to high on the last run and want out now. Glty
Lol ok, I don't get it. I've been watching this one since .04. Seen all the supposed huge lawsuit victories come and go with little to show for it. Watched it get diluted down to .0001. Now because of a share reduction it's a buyout candidate? Get real fella. There's money to be made here for sure, I'm not saying there isn't. But a bottom barrel infringement company with almost zero revenue isn't getting bought out. Keep pumping. You dont get it, you're to thick.
ENIP is nothing more than a patent infringement company. They only make money by suing other companies. Be careful with this one
URBF
On February 10, 2015, the Company issued a promissory note for $166,000 to one investor, less deferred financing charges of $12,000. Pursuant to the agreement, the amount owing is unsecured, bears interest at 8% per annum, and is due on February 12, 2016. The amount owing is convertible into shares of the Company’s Class A common stock 180 days after the date of issuance of the debenture (August 9, 2015) at a conversion rate of 70% of the average of the three lowest closing bid prices of the Company’s Class A common stock for the twelve trading days ending one trading day prior to the date a notice of conversion is sent by the holder to the Company. As at April 30, 2015, the Company recorded accrued interest of $2,874 (July 31, 2014 - $nil), which has been included in accounts payable and accrued liabilities.
(b)
On March 23, 2015, the Company issued a promissory note for $115,000 to one investor, less deferred financing charges of $15,000. Pursuant to the agreement, the amount owing is unsecured, bears guaranteed interest at 7% per annum, and is due on March 23, 2016. The amount owing is convertible into shares of the Company’s Class A common stock at a price of $0.021 per share or 65% of the lowest closing bid price of the Company’s Class A common stock for the twenty trading days ending one day prior to the date a notice of conversion is sent by the holder to the Company. As at April 30, 2015, the Company recorded accrued interest of $8,050 (July 31, 2014 - $nil), which has been included in accounts payable and accrued liabilities.
The Company was required to classify the conversion feature contained within the convertible debenture as a derivative liability. As such, the Company recorded a derivative liability related to the convertible debt equal to the estimated fair value of the conversion feature of $115,000 with an equivalent discount on the convertible debenture.. The Company records accretion over the term of the convertible note up to its face value of $115,000. During the nine months ended April 30, 2015, the Company recorded accretion expense of $838 increasing the carrying value of the convertible debenture to $838. During the nine months ended April 30, 2015, the Company recorded a loss on the change in fair value of the conversion option derivative liability of $48,154 and as at April 30, 2015, the fair value of the conversion option derivative liability was $163,154.
F-9
URBAN BARNS FOODS INC.
Notes to the Consolidated Financial Statements
(expressed in U.S. dollars)
(unaudited)
5.
Convertible Notes (continued)
(c)
On March 23, 2015, the Company issued a promissory note for $27,500 to one investor, less deferred financing charges of $2,500. Pursuant to the agreement, the amount owing is unsecured, bears guaranteed interest at 7% per annum, and is due on March 23, 2016. The amount owing is convertible into shares of the Company’s Class A common stock at a price of $0.021 per share or 65% of the lowest closing bid price of the Company’s Class A common stock for the twenty trading days ending one day prior to the date a notice of conversion is sent by the holder to the Company. As at April 30, 2015, the Company recorded accrued interest of $1,925 (July 31, 2014 - $nil), which has been included in accounts payable and accrued liabilities.
The Company was required to classify the conversion feature contained within the convertible debenture as a derivative liability. As such, the Company recorded a derivative liability related to the convertible debt equal to the estimated fair value of the conversion feature of $27,500 with an equivalent discount on the convertible debenture. The Company records accretion expense over the term of the convertible note up to its face value of $27,500. During the nine months ended April 30, 2015, the Company recorded accretion expense of $200 increasing the carrying value of the convertible debenture to $200. During the nine months ended April 30, 2015, the Company recorded a loss on the change in fair value of the convertible option derivative liability of $11,515 and as at April 30, 2015, the fair value of the conversion option derivative liability was $39,015.
6.
Derivative Liabilities
The conversion options of the convertible debentures payable, as disclosed in Note 5, are required to be recorded as derivatives at their estimated fair values on each balance sheet date with changes in fair value reflected in the statements of operations.
The fair value of the derivative liabilities for the March 23, 2015 convertible debenture for $115,000 and the March 23, 2015 convertible debenture for $27,500 were $163,154 and $39,015 on vesting, respectively. The fair values as at April 30, 2015 and July 31, 2014 are as follows:
April 30, July 31,
2015 2014
$ $
Derivative liabilities:
March 23, 2015 convertible debenture for $115,000 163,154 –
March 23, 2015 convertible debenture for $27,500 39,015 –
202,169 –
During the period ended April 30, 2015, the Company recorded a loss on the change in fair value of derivative liabilities of $59,669 (2014 - $140,048).
The fair value of the derivative financial liabilities was determined using the Black-Scholes option pricing model using the following assumptions:
Expected Expected
Expected Risk-free Dividend Life (in
Volatility Interest Rate Yield years)
At the issuance date:
March 23, 2015 convertible debenture for $115,000 86% 0.24% 0% 1.00
March 23, 2015 convertible debenture for $27,500 86% 0.24% 0% 1.00
As at April 30, 2015:
March 23, 2015 convertible debenture for $115,000 86% 0.24% 0% 0.90
March 23, 2015 convertible debenture for $27,500 91% 0.24% 0% 0.90
7.
Note Payable
As at April 30, 2015, the Company owed $184,054 (Cdn$223,000) for a promissory note that was issued on October 29, 2014. The note is secured against the Company's net assets, bears interest at a rate of 12.68% per annum, and due the earlier of: (i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt; or (ii) October 29, 2015. As at April 30, 2015, $11,212 (Cdn$13,585) (2014 - $nil) is owed for accrued interest, which is included in accounts payable and accrued liabilities.
F-10
URBAN BARNS FOODS INC.
Notes to the Consolidated Financial Statements
(expressed in U.S. dollars)
(unaudited)
8.
Related Party Transactions
(a)
As at April 30, 2015, the Company owed $4,448 (July 31, 2014 - $15,436) to the President of the Company which is unsecured, non-interest bearing, and due on demand.
(b)
As at April 30, 2015, the Company owed $nil (July 31, 2014 - $8,259) to the Vice President of the Company which is unsecured, non-interest bearing, and due on demand.
(c)
As at April 30, 2015, the Company was owed $1,551 (July 31, 2014 - $nil) from the Vice President of the Company relating to a prepayment of expenses.
(d)
As at April 30, 2015, the Company owes $49,521 (Cdn$60,000) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on the earlier of i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt or ii) December 18, 2015. As at April 30, 2015, $2,274 (Cdn$2,755) is owed for accrued interest.
(e)
As at April 30, 2015, the Company owed $49,521 (Cdn$60,000) for a loan payable to a director of the Company. The loan is secured against the Company’s assets, bears interest at a rate of 12.68% per annum and due on the earlier of i) the Company raising Cdn$1,000,000 or more through issuance of equity or debt or ii) January 7, 2016. As at April 30, 2015, $2,026 (Cdn$2,455) is owed for accrued interest.
(f)
As at April 30, 2015, the Company owed $3,302 (July 2014 - $3,673) to a company controlled by the former President of the Company which is unsecured, non-interest bearing, and due on demand.
(g)
As at April 30, 2015, the Company had deferred compensation of $12,420 (July 31, 2014 - $37,352) incurred to directors and officers of the Company. During the nine months ended April 30, 2015, deferred compensation of $24,932 (2014 - $187,397) was charged to operations and included in general and administrative expenses.
(h)
During the nine months ended April 30, 2015, the Company incurred professional fees of $nil (2014 - $12,600) to the spouse of the former President of the Company.
(i)
During the nine months ended April 30, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $135,173 (2014 - $146,988) to directors and officers of the Company.
(j)
During the nine months ended April 30, 2015, the Company incurred consulting fees (included in general and administrative expenses) of $1,802 (2014 - $nil) to the daughter of the President of the Company.