Atlas Capital Holdings, Inc. (ALCL) shares plummeted to a new 52W low on Thursday September 1st, despite a fresh letter of intent (LOI) regarding the acquisition of Textraw, Inc. ALCL forfeited 72% in just two (2) trading sessions for no apparent reason (at least as far as public knowledge goes).
In analyzing the situation, PSH came to the following conclusion regarding ALCL‘s losses over the past trading sessions:
“The purchase price for these interests is expected to be $3,000,000, and will be paid in some combination of cash and Company stock as agreed upon by the parties prior to closing.”
“Be paid in some combination of cash …” – That’s the key here, we think…which could point to the selling that this penny stock market has seen these past couple of days. A call to ALCL‘s transfer agent confirmed our hunch – shares issued and outstanding haven’t budged from their 66,303,383 count in August – which is when this report here was dated.
This suggests that shares being sold into the market were registered previously and are now diluting the float, not-so-much the valuation as far as investment analysis would go (though we’re talking OTC here, so what ‘valuation’, right?)
Long analysis short, PSH thinks ACLC stock is setting up for a bounce, provided ALCL keeps dilutive offering news and other bearish goodies to themselves for the next few days.
Atlas Capital Holdings Inc
2234 North Federal Highway
Suite 330
Boca Raton, FL 33431
United States
Tel: 561-488-7623 (Christopher Davies)
Atlas Capital Holdings, Inc. was incorporated in the State of Nevada on September 13, 2006. The Company was formerly known as Micro Mammoth Solutions, Inc. and operated as such until January 25, 2010. On January 26, 2010, the Board of Directors of the Company approved a Stock Purchase Agreement between the Company and all of the shareholders of Atlas Capital Partners, LLC. Following the acquisition of Atlas Capital Partners the shareholders approved an amendment to the Company’s Articles of Incorporation changing the Company’s name from Micro Mammoth Solutions, Inc. to Atlas Capital Holdings, Inc