Last week has not been so spectacular for Directview Holdings Inc (OTCMKTS:DIRV) shareholders. The stock price was trending south after recording strong gains the previous week. The shareholders first saw their investments shoot up after the company announced about scope of wearable body cameras, amidst the countrywide debate on option of body cameras being used by all policemen.
Directview Holdings Inc (OTCMKTS:DIRV) is currently trading at $0.00830 losing 5.68% from yesterday’s close.
Directview reported a joint project with NASDAQ-listed xG Technology, Inc. (NASDAQ:XGTI) to develop a new body camera. The news pushed stock into far greater liquidity in this month. Last Wednesday, the company said that an ABC News affiliate channel highlighted the entire body camera project in a news segment. All the factors were almost perfectly aligned, increased liquidity, impressive news, a deal with a NASDAQ-listed entity, media exposure and so on.
However, the stock declined last week, primarily due to poor financial reports. As per the latest report, Directview Holdings Inc (OTCMKTS:DIRV) had $13,000 in cash $84,000 as total assets. The total liabilities are massive at $4.7 million. The annual revenue for FY2014 was $0.51 million and net loss was $1.23 million.
The investor confidence is also shattered by the fact that addition of next round of $115,000 in convertible debt can be converted into common stock at a 30% discount measured from the lowest traded price in thirty days before conversion.
Moreover, xG Technology, Inc. (NASDAQ:XGTI) which is a NASDAQ listed company is facing its grace period before it gets delisted from national exchange. So, the buzz that the company made a deal with a NASDAQ listed company has now started to fade. The company’s grace period ends in August 2015.