Lifelogger Technologies Corp (OTCMKTS:LOGG) Falls Further Down
For nearly the entire trading session yesterday it seemed as if Lifelogger Technologies Corp (OTCMKTS:LOGG) would be able to recover at least some of their recent losses. The ticker was fluctuating around the $0.12 per share mark but just minutes before the closing bell it lost its footing and slid to a close over 5% in the red at $0.108.
Although the last PR published by LOGG is now nearly a month and a half old investors are still paying attention to the company – yesterday 2.2 million of the company’s shares changed hands. The last time the stock saw such intense trading was 10 months ago in July 2015. One possible explanation for the massive daily volumes could be the approaching deadline for the acquisition of Pixorial, Inc.
LOGG signed a letter of intent for the acquisition of Pixorial’s assets at the end of October 2015 that was followed by a definite agreement in mid-November. Initially the closing of the deal was supposed to take place prior to March 30, 2016, but the period was extended to April 30. While a potential PR about the successful completion of the acquisition could reinvigorate LOGG it might be wise to not get carried away. After all, back in 2014 Pixorial’s management team must have had valid reasons to decide that moving on was not economically viable.
Furthermore, LOGG is simply riddled with red flags. To say that the company’s financial state is discouraging would be an understatement – as of December 31, 2015, the balance sheet looked like this:
• $132 thousand cash
• $145 thousand total current assets
• $552 thousand total current liabilities
• ZERO revenues
• $1.08 million net loss
With zero revenues for the entire 2015 and underwhelming cash reserves even the current market cap of $9.5 million could be viewed as a bit inflated.
At the start of March LOGG entered into a debt settlement agreement with Glamis Capital SA under the terms of which $142 thousand of debt was converted into 1.8 million common shares. If you do the math you will see that this makes the average price of each share just $0.07875. Even after the recent drop in the company’s share price these shares could still bring massive gains to their owners if they decide to sell them on the open market.
Trading LOGG‘s stock requires the use of caution. Don’t underestimate the risks and do thorough due diligence before committing to anything.
