IFAN Financial Inc (OTCBB:IFAN) has been upwards bound since dropping below $0.45 a share last week temporarily. Over the past few months IFAN has been one of the top traded stocks on the bb’s.
IFAN is a multi-million dollar hard mailer promotion from the McShane Letter responsible for such picks as USGT, NVGC and now IFAN. The IFAN campaign sports a 15 page glossy hard mailer and a landing page at ifanreport.com backed by a $3.5 million dollar budget from Mintefor Investments LTD.
The Company said on January 2 that it has entered into the sale of $1 million of its common stock and warrants in a private placement agreement with an accredited investor.
The agreement provides for a staged private placement of common shares and warrants. The investor has begun to fund the first tranche in the amount of $150,000. The fifth and final tranche in the amount of $200,000 is to be paid by February 9, 2015.
The $3.5 million in advertising dollars has done wonders for the stock price; IFAN exploded onto the scene in early October at less than $0.20 a share and has exploded upwards since on spectacular volume.
IFAN Financial Inc (OTCBB:IFAN) says they design, develop, and distribute software to enable mobile payments that include the ability to use a debit card and corresponding PIN number while purchasing online on a mobile phone, tablet, or computer.
The Company was incorporated in Nevada in 2010 as Infantly Available, Inc. focused on developing and distributing an organic clothing line designed for children. In September of this year they changed their name to IFAN Financial Inc and affected a 1 for 140 forward split of the common stock.
The promotion on IFAN began immediately with hard mailers featuring the McShane Letter hitting homes across the Country in early October. The glossy hard mailer stated ”Forbes Magazine calls it…The $15 Trillion Gold Rush!” touting IFAN as ”a brand-new technology that lets customers use debit cards online without giving their credit card info…” and that it is likely to be purchased by Apple, Amazon, or Google.”
IFAN disclaimer showing $3.5 million budget: “Mintefor Investments LTD paid three million and five hundred thousand dollars to marketing vendors to pay for all the costs of creating and distributing this Advertisement, including printing and postage, in an effort to build investor and market awareness. Don McShane received twelve thousand dollars for this advertising campaign and expects to receive an unknown amount in subscription revenue. Viewers of this advertisement should understand that trading activity and stock prices in many if not all cases tend to increase during the advertisement campaigns of the profiled company and in many if not all cases tend to decrease thereafter”
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We can look at the prior picks of the McShane Letter to get a better sense of where IFAN is headed; USA Graphite Inc; USGT ran from around $0.30 to highs near $1 after they announced it as their pick in ealry 2013 and now trades well below a penny. Nevada Gold Corp; NVGC ran from pennies to over $0.60 after the McShane Letter featured it at the end of last year, the stock currently trades for well under a penny.
Currently the share structure of IFAN look like this:
Shares Outstanding = 79,960,020
Chrisopher Mizer = 35,000,020 (restricted)
Steve Scholl 15,000,000 (restricted)
Mobile Cash America = 61,858 preferred shares convertible into 43,300,600
Anonymous Seedshareholders = 29,960,000 free trading shares (acquired at $0.0018 per share)
The 29,960,000 free trading shares being held by Anonymous Seedshareholders is the stock that is being liquidated into the $3.5 million Mintefor Investments LTD promotion.
So we can see from the McShane Letter previous promotions that the stocks tend to make parabolic moves upwards on massive volume during the promotion and then collapse to less than a penny afterwards. This might have something to do with the featured Company’s lack of any real fundamentals; according to the 10Q IFAN filed on August 28, the Company has $0 cash on hand up from $1,355 last year. Basically they have no assets, $0 revenues to date and only losses during their limited operating history.
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Currently trading at a market valuation approaching $54 million IFAN has minimal assets and $0 revenues to date. The Company has only 3 employees and nothing to suggest they can execute on their business plan or even want to for that matter.
IFAN continues to make highly explosive gains and looks to be headed significantly higher in the short term. But we have to look no further than the Company’s filings and the McShane Letter history to know where this one is going. Common sense tells u there is something wrong when they are spending $3.5 million to promote the stock of a Company with $0 in the treasury. Short term IFAN could easily go much higher as long as the promo dollars keep flowing, long term IFAN could collapse from current levels.
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Disclosure: we hold no position in IFAN either long or short and we have not been compensated for this article.