AvWorks Aviation Corp. (OTCMKTS:SPLI) Continues Its Crash
AvWorks Aviation Corp. (OTCMKTS:SPLI) continued its descent yesterday, dropping another 19.20%, despite the fact that there are now less red flags surrounding the company than ever.
Until its recent 8-K/A filing, SPLI could have been counted among the most suspicious stocks on the OTC. The company had declared that it had made a merger into an entity called VAPOR GROUP, INC., however there was no solid evidence for it – the consolidated balance sheets hit the web just this month, despite being due for more than three. The ticker and name change were also announced as “pending”, but haven’t occurred to date. The opacity surrounding SPLI at that point drove more than a few investors away. It can be largely held accountable for the company’s fall from the high of approximately $0.40 it had reached when the news of the merger hit the web, to its present sorry low of $0.0888.
However, the consolidated balance sheet is now a fact, and by the look of things it isn’t half bad. Although the old SPLI was obviously doing poorly, the merged entity filed the following financials for the period ended Dec 31, 2013:
- cash – $48 thousand
- current assets – $944 thousand
- current liabilities – $1.1 million
- annual revenues – $1.9 million
- annual net income – $161 thousand
While this new SPLI‘s current financial state is far from perfect, it’s not nearly as bad as it once was. After the merger, the company’s revenues are finally a total worth considering. Also, while its cash on hand and profit totals aren’t really something to write home about, it should be noted that most other pot stocks are currently operating at a loss and struggling with crushing debt.
The reputation of SPLI‘s CEO, a Mr. Dror Svorai, is still a cause for concern, but it can hardly be held accountable for the relentless downward slide that the ticker is experiencing presently. The way things are going, SPLI may need some real good PR if it is to reverse its nose dive to the bottom of the charts.
Another marijuana company that lost a significant portion of its market value yesterday is Tranzbyte Corp. (OTCMKTS:ERBB), who fell 15.05% during the span of a single session.
