IFAN Financial Inc (OTCBB:IFAN) Gets Pumped for $3.5 Million
Before we get to IFAN Financial Inc (OTCBB:IFAN)’s current situation, we want to step back in time and see what happened one and a half years ago when the company was still called Infantly Available Inc.
We would like to draw your attention to the 10-Q published on July 12, 2013 and, more specifically, to Page 10. There, under the Stockholders’ Equity section, you’ll read that during the nine months ended May 31, 2013, some seed shareholders bought 214,000 shares of IFAN common stock at $0.025 per share.
That’s quite a bargain, you might be thinking. And you’d be right. Yesterday, after gaining around 4.6%, IFAN closed the session at $0.45 per share. Still, you’re also thinking, 214,000 shares is not that much in the grand scheme of things. After all, in a matter of six and a half hours yesterday, investors traded nearly 700 thousand shares.
You’re right once again. 214,000 shares is not that much. The 214,000 shares that we’re talking about, however, are not 214,000 anymore. There was a 140 for 1 forward stock split back in September 2014 which means that the 214,000 shares that we’re talking about were turned into 29,260,000.
How much did the seed shareholders pay for them? $5,350. How much can they pocket if they are to unleash them on the open market at the current levels? About $13.5 million.
Can you imagine how happy the seed shareholders would be if there’s a paid pump for IFAN that could push the stock even further up? They’re in luck.
An entity called Mintefor Investments LTD has set aside a budget of $3.5 million for an awareness campaign on IFAN. A certain Don McShane has received $12 thousand of the total amount and in exchange, he has set up a long and colorful landing page for the ticker which gives it a 5-month target of $4.50 per share and a long term target (whatever that means) of a whopping $19.
So, IFAN is being pumped and by the looks of things, the campaign is starting to have its effects on the performance. We’ve seen some increased volumes over the last few days and although the price hasn’t made any significant jumps, it appears to be inching its way up the charts.
If the seed shareholders that we talked about at the beginning of the article feel like making some quick and easy money, they could go right ahead and release their hugely discounted stock on the open market. Unfortunately, this will put enormous pressure on IFAN and once the hype subsides, the people who truly believe in Don McShane’s price targets might see a huge portion of their investments go down the drain.
In case you’re still not convinced, we would like to draw your attention to the company’s latest SEC filing. It’s an 8-K report published on October 15 and it contains the audited financial statements of Mobicash America Inc – the subsidiary that could, in Don McShane’s words, turn IFAN into “the next Paypal”. Here are the figures as of August 31:
- $4,691 in cash and current assets
- $3,114 in current liabilities
- NO revenue since inception
- $444 thousand in quarterly net loss
We reckon that the figures above require no further comments.
