Medient Studios Inc (OTCMKTS:MDNT) Rises Ahead of News
When Medient Studios Inc (OTCMKTS:MDNT) became public back in October 2012, they made sure to inform everyone that they have set themselves a pretty serious task. They said that they are a multinational film production and distribution company, informed us that they have produced fourteen movies, and announced that they’re in the process of scaling up the operations.
There aren’t that many film producers on the OTC Markets, but even so, MDNT felt that they needed to do something more in order to really engage investors’ interest. Last year, they said that they will be building a state-of-the-art film production facility called the Studioplex. They told us that it’s going to turn the industry on its head, secured some approvals and financing, and set themselves a pretty ambitious deadline – the Studioplex was supposed to be operational before the end of the first quarter of 2014.
We’re now nearing the end of the second quarter of 2014 and construction has only just begun. The question is: “Have MDNT bitten off more than they could chew?“.
Missing the deadline wasn’t a particularly good sign. Penny stock investors are not renowned for their tolerance towards broken promises and they’re certainly not the most patient group of people in the world.
On the bright side, the construction did begin which means that unlike other small cap ventures whose primary occupation is issuing forward-looking press releases, MDNT are at least trying to get the ball rolling. All the shareholders can do now is keep their fingers crossed and hope that there will be no more delays. Sounds straightforward enough, but is it?
We tried to warn our readers numerous times about the fact that the dilution has been getting a bit out of hand over the last year or so. MDNT‘s O/S count grew from 36 million in May 2013 to 661 million in May 2014 and with 5 billion shares authorized, the possibilities for further stock issuance are certainly open.
This, coupled with some less than impressive financial statements, meant that the stock dropped from over $2 to just $0.002 in a matter of less than eleven months. Needless to say, the shareholders aren’t particularly happy. But is there a glimmer of hope?
Apparently, some people reckon that there is. Yesterday, MDNT managed to claw back quite a lot of lost ground. After six and a half hours of intense trading, it recorded a dollar volume of around $1.37 million and finished the day 54% above last week’s close. Currently, the stock stands at $0.0034 which might not sound like much, but it is a start.
The reason for yesterday’s jump is, apparently, an announcement made by Manu Kumaran, MDNT‘s CEO. Last week, he told his Twitter followers that “Yellow” (a 2012 film produced by MDNT and directed by Nick Cassavetes) will be released in the US at the end of August. He also said that there will be an official press release about it today.
The screening of the movie should certainly bring in some revenues and it could help MDNT with its balance sheet a little bit. But will it be enough to lessen the effects of the devastating dilution?
We’ll leave it up to you to weigh the odds and decide for yourself.
MDNT wasn’t the only OTC Stock to register an impressive jump yesterday. GreenGro Technologies, Inc. (OTCMKTS:GRNH) gained 17% and logged a healthy $4.2 million in dollar volume. Vapor Hub International Inc (OTCMKTS:VHUB), on the other hand, dropped further down and wiped out another 18% of its value. It closed the day with a share price of $0.458 and a dollar volume of around $530 thousand.