Unique Logistics International Inc (OTCMKTS: UNQL) is making an explosive move up the charts after the company filed a Form S-1/A to register the sale of 25 million shares in a share offering unwritten by EF Hutton. The Company has applied to list its stock on the Nasdaq Capital Market under the symbol UNQL and is prepared to do a reverse split to get there. The Company states it will not proceed with this offering in the event the Common Stock is not approved for listing on Nasdaq. There is a common misconception that suggests RS is bad for PPS and while this is true for dilution schemes when it’s a real company affecting a reverse split to up list to a national exchange it almost always results in significant moves to the upside. We were watching CTSO back in the day when the company did a 25 for 1 RS and retail investors ran for the hills. After opening after the RS at just over $4 a share, the stock quickly ran to over $12 in 3 weeks.
UNQL is heating up and getting noticed by some big players in small caps who are accumulating at current levels. Last week the Company reported record financial results (unaudited) for the second quarter and the first six months of its current fiscal year. Second quarter net sales increased $280.8 million, or 225% versus the second quarter of prior year to $405.4 million. Second quarter Income from Operations, up $5.7 million, or 190%, versus the second quarter of prior year and adjusted EBITDA for the second quarter is up $4.2 million, or 89%, versus the second quarter of prior year. These are big board revenue numbers and put UNQL above 99.9% of this exchange. Microcapdaily first reported on UNQL on July 4, 2021 stating at the time: “UNQL is doing 100’s of millions of dollars a year in revenues and only trades where it does because of a serious debt problem that has plagued the Company and caused massive dilution in recent months.” That problem has now been solved with management recently eliminating all convertible debt in its balance sheet eliminating $5.9 million of debt off the books over the past 3 months.
