HRAL Shares in Spotlight on Deal Speculation 15 Jul 2020, Wednesday Post By : Greg Folin Post Views: 16 Hear AtLast Holdings, Inc. (OTCMKTS:HRAL) took off last Monday, powering as much as 200% on a massive uptick in volume. There’s one clear reason for this move: deal speculation.
Based on a filing out a couple weeks ago, it has become apparent that the company could be nearing an announcement of what effectively amounts to a reverse merger in which it will become an entity known as “Crystal Clear Corporation”. At least, that’s the exciting narrative now dominating the message boards.
Here is the only official word on the matter:
“On May 11, 2018, the Company signed a Binding Letter of Intent (LOI) to purchase the shares of Crystal Clear Corporation (Crystal). Crystal owns the Intellectual Property and assets pertaining to a new type of commercial hearing device. The LOI requires the parties to negotiate and sign a definitive Purchase Agreement so that in exchange for 20 million restricted shares in the Company, the Company would receive 100% of Crystal shares. The Company is also required to provide $200,000 in working capital. If at the end of 180 days from the signing of the Purchase Agreement, the Company has not provided the agreed upon working capital, the percentage ownership transferred by Crystal to the Company will be reduced at an agreed upon rate.”
That is from an Interim Financial Report filing on July 2 under section 12. “SUBSEQUENT EVENT”. This appears to have spurred all the action in between.
However, it shouldn’t go without noting that the company also has gotten current with all filings, putting out a series of MD&A’s and attorney letters to bring everything up to date.
In other words, the I’s are being dotted and the T’s are being crossed. This suggests something big is coming.
We would also point out that filings showed a share structure with a reduced float and outstanding share total in the cap table. Apparently, the outstanding shares are now down to just over 9 million shares, rather than the 25 million shown on OTCmarkets.com before this. The float was also listed, showing less than 800K shares rattling around in the market.
Hence the move to foment a price squeeze, which could conceivably continue to panic bears camped out in the name.
Prior to this, the company had the following description: “The company offers hearing assessments and hearing instruments. Its products comprise digital hearing aid instruments and assistive-listening devices, as well as accessories, such as hearing aid wax guards, chargers, cleaners, sound tubes, etc. As of March 31, 2010, HearAtLast Holdings, Inc. had 23 hearing aid clinics within the Wal-Mart structure. The company was formerly known as 226 Music Group, Inc. and changed its name to HearAtLast Holdings, Inc. in 2007. HearAtLast Holdings, Inc. was founded in 2004 and is headquartered in Georgetown, Canada.”
The Next Step?
The best lead we have on Crystal Clear Corporation is a company that posits “Advances in audio technology can bring amazing sound to the ear. What we actually hear, however, is determined by the translation of that sound to electrical signals by an individual’s auditory nerve and how these signals are interpreted by the brain. Our patented NC Audio® software technology adapts and enhances the incoming sound to match the individual’s auditory system. This neural enhancement is the next frontier in audio technology and will provide the ultimate audio experience. All of the main competitor products use armature transducers which are inherently less reliable and produce crossover frequency issues that negatively impact sound quality”
That said, aside from getting current on everything, the company has been silent when it comes to declaring the path ahead, so everything should be understood as pure speculation at this point on the part of the trading community, with the exception of the fact that HRAL is clearly getting its you-know-what in order right now, which is usually a precursor to some grander plan rather than an ends in itself with a company like this.
When we know more, you’ll know more. But, for now, it’s certainly worth watching closely, and we would expect some fireworks on the way in some form.
