Sack Lunch Productions Inc (OTCMKTS:SAKL) witnessed a volatile session during Monday’s trading session. The stock formed a “long legged doji” candlestick pattern on the daily charts indicative of the lack of conviction on either side.The formation of higher tops and higher bottoms on the charts is indicative that bulls are using dips in the stock as a buying opportunity. The index measuring relative strength continues to surge higher and shows no signs of a reversal. Momentum indicators clearly suggest that bulls have the upper hand at the moment. The stock hit a fresh 52-week high during yesterday’s trading session.
Sack Lunch Productions Inc (OTCMKTS:SAKL) managed to gain some shareholders’ interest after it posted an impressive third-quarter performance. For the period ended on September 30, 2015, the company reported its cash balance at $766,000. The current assets of the company stood at $3.1 million and current liabilities at $6.6 million. The quarterly revenues for the company came in at $6 million while it reported net income to the tune of $718,000 during the quarter.
The company stated that its sales are on the rise year-over-year, and the profitability is attractive enough to boost confidence in its investors. Furthermore, the company expects the recent acquisition agreement to enhance its business going forward. Meanwhile, the company has tried to address its deficit working capital situation and weak balance sheet status through securing a credit facility, extended by TCA Global Credit Master Fund. Under the credit facility agreement, Sack Lunch Productions Inc (OTCMKTS:SAKL) can access amount up to $5 million, which will be serviced by convertible notes.
The company did not disclose the conversion terms of the issued convertible notes. Also, the company remained silent on the status of its older convertible debt, which was outstanding as at the end of September 2015. The concealment of such information can impact shareholders and will only tarnish the image of the company, which may oversee a potential dilution.
Also, silence on such matters can force shareholders to link its future with that of Green Endeavors Inc. (OTCMKTS:GRNE), which is run by CEO Richard Surber, same as that of Sack Lunch. In the absence of any update from the company over its massive dilution of shares, it will take no time for shareholders to assume that Sack Lunch is destined to the same future as Green Endeavors, which is trading in the triple zero levels.
The stock price of Sack Lunch Productions Inc (OTCMKTS:SAKL) remained unchanged at $0.0700 during its previous trading session.
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