Ubiquity Inc (OTCBB:UBIQ) is back just over $1 after the stock made a spectacular reversal from $1 to $2.75 in recent days. UBIQ is a stock with a history of big moves running from $2.25 to highs of $11.58 a share last year.
UBIQ has developed The Sprocket; an intuitive user interface making access to all content from any device in a simple, consistent format, has enabled the search and identification of any object and image in all video and digital media, and has developed a platform for mobile transaction including the integration of payments, money transfers, coupons and gifts.
Ubiquity Inc (OTCBB:UBIQ) is an Irvine, California based media company that owns a robust portfolio of patents and intellectual property spanning Web 3.0, immersive advertising, video compression, content distribution, eCommerce, and mobile applications to support the commercialization of new technologies. In addition, we intend to pursue strategic licensing opportunities.
Over the past few months UBIQ has issued some really explosive press; on August 14 they announced an LOI with American Tec Company Limited (Amtec) to advance the development and distribution of Ubiquity’s Sprocket software and data analytics in Asia. The revenue expectations, which will be further defined in the master agreement, are to generate a minimum of $150M US in contracts/licenses within 12 months of the completed software being launched into the local marketplace.
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Back in September UBIQ announced its intent to up list to the NASDAQ stock market, including pursuing a firm commitment underwritten offering with gross proceeds to the Company of at least $40 million (the “Proposed Offering”). To better manage and increase the ability to successfully implement this strategy, Ubiquity has provided all of its current holders of its shares of restricted common stock with registration rights and the opportunity to participate in the Proposed Offering.
Chris Carmichael, CEO of Ubiquity said “We believe up listing to NASDAQ will improve our visibility to investors, as well as to enhance the trading liquidity of our common stock, We believe our shareholders will benefit from this offering as it will allow us to continue to grow our company and drive shareholder value as we prepare for a future NASDAQ up listing. Providing registration rights to our restricted stockholders will also mitigate the potential selling pressure that could complicate our proposed offering,” noted Chris Carmichael, CEO.
In a recent business update UBIQ said they completed a round of financing of $11,115,064 through the sale of 16,988,143 shares of common stock. These numbers do not appear in the latest 10q yet however.
Conclusion: UBIQ is making an explosive move up after it hit an all-time low of $0.70 on accelerating volume. The move comes as a welcome reversal to shareholders who have endured months of steady downward drift.
According to the 10Q UBIQ filed on November 14 the Company has a total of $255,146 in the treasury and mounting short term debt including $3.1 million in accounts payable. Since inception UBIQ has done minimal revenues and continues to lose significant amounts of money every quarter due to very high operating expenses. This condition is a prelude to dilution and it shows; OS has increased from 11,220,000 shares out as of May 20, 2013 to 103,076,911 currently issued and outstanding.
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UBIQ is a stock with a history of explosive moves running from $2.25 to over $11 last year and again from $1 to $2.75 just recently. As the stock is back at $1 investors are speculating on another reversal. Currently trading at a $100 million market valuation UBIQ has little real fundamentals to back this and could drop significantly over the long term.
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Disclosure: we hold no position in UBIQ either long or short and we have not been compensated for this article.