Soul and Vibe Interactive Inc (OTCBB:SOULD) Dumping Continues
Sometimes doing the right thing has a negative effect on a stocks price. Soul and Vibe Interactive Inc (OTCBB:SOULD) had until the end of the month to file its quarterly financial report, but chose to do so on Monday, and in the previous two sessions it has lost about 70% of its share price.
After dropping 36% on Monday, yesterday SOULD lost another 55.37%, this time on more significant volume – more than 1.4 million shares, representing nearly 10% of the outstanding shares of common stock.
To be clear, when I say “do the right thing” I mean it did the right thing from an ethical point of view. The crash that followed is in no way unwarranted. The report revealed that SOULD hasn’t really done well on the business side.
The company still has nominal assets, and it’s nowhere close to generating revenue. The report also confirmed that the company intends to obtain the needed additional financing through issuance of debt and equity sales.
On Aug. 12, SOULD executed a 1 for 3 reverse split. The management explained this move as one which would put the company “in a better position for up-listing to a national exchange.” Even at the time this explanation lacked any solid basis as up-listing to a bigger exchange requires much more than a stable bid price. Now that the share price is back below $1, the explanation seems even more inadequate.
CEO and President Peter Chiodo will have to do a lot better if he wants his company to become an attractive investment.