FutureWorld Corp (OTCMKTS:FWDG) found itself resurrected after announcing the dividend for its holding company, FutureLand Corp. As per the announcement, the shareholder of FutureWorld Corp holding 300 shares of the company will receive one share of FutureLand Corp.
Awaiting FINRA approval
The company will ascertain the shareholders of its shares by April 17, 2015. Meanwhile, the dividend will be distributed only once the company gets clearance for listing FutureLand under a new ticker symbol following its split from the company.
The announcement of a dividend has clearly been successful in gaining traction among the investors. But like any other OTC ticker, FutureWorld Corp (OTCMKTS:FWDG) too has some red flags. Firstly, its most recent financial account is less convincing.
For instance, the company maintains cash and currents assets to the tune of $151,000 and $73,000 respectively. Its current liabilities stood at $2 million while the quarterly net loss was as huge as $168,000. The revenues came in at $363,000 as at the end of December 31, 2014, which is a relevant progress given the company’s nil sales during the same period last year. However, it is easy to decipher that revenues are not enough to make the company profitable anytime soon. Meanwhile, the company’s working capital deficit of $1.3 million poses another challenge.
After entering into marijuana space last year and enjoying the hype built around the sector, FutureWorld Corp (OTCMKTS:FWDG) sold HempTech Corp earlier last month. In order to remain in the good books of its investors, the company will need to deliver on its promise of successfully converting FutureLand into a public entity.
Based on the past experiences, the company’s CEO Sam Talari is known for not sticking to his words. Hence, any defaults in the current plans can endanger the very existence of the company, which remains to be seen. The stock of FutureWorld Corp (OTCMKTS:FWDG) zoomed by 44% to $0.00345 on Tuesday while 17.77 million shares exchanged hands.