What’s Driving the Action in Pulse Evolution Corp (OTCMKTS: PLFX)?

What’s Driving the Action in Pulse Evolution Corp (OTCMKTS: PLFX)?

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We saw a massive spike higher in shares of Pulse Evolution Corp (OTCMKTS: PLFX) today. This is a company fighting for a leadership position in the niche of providing lifelike digital humans for movies and digital content.

The key catalyst driving the action today was apparently the revelation that Recall Studios (OTC: BTOP) announced its offer to purchase 100% of the unrestricted and open-market shares of PLFX for $1.38 per share.  According to that release, “together with its acquisition of Evolution AI Corporation, which was also announced today, the proposed tender offer would result in Pulse Evolution Corporation becoming a majority-owned subsidiary of Recall Studios, Inc.”

Pulse Evolution Corp (OTCMKTS: PLFX) develops computer-generated human likeness applications for utilization in education, health care, telecommunications, defense, transportation, and entertainment industries. It develops virtual humans for live shows, virtual reality, augmented reality, holographic, 3D stereoscopic, Web, mobile, interactive, and artificial intelligence applications.

The company is headquartered in Port St. Lucie, Florida.

Pulse Evolution Corporation is a market leader in the emerging virtual human likeness space, and among the most globally recognized developers of hyper-realistic digital humans – computer-generated assets that appear to be human and can perform in live shows, virtual reality, augmented reality, holographic, 3D stereoscopic, web, mobile, interactive and artificial intelligence applications.

According to company materials, “The Company is a recognized pioneer and leading developer of hyper-realistic digital humans for entertainment, virtual reality, augmented reality and artificial intelligence.  Pulse is most popularly known for producing the animated digital human likeness of the late Michael Jackson that appeared in a live performance of the Billboard Music Awards on May 18, 2014, seen by more than 11 million television viewers and generating more than 2,400 news articles and 98 billion Internet impressions. Founded by the world’s leading executives and producers of photorealistic digital humans, such as the lead character from the film “The Curious Case of Benjamin Button” and the concert experience “Tupac at Coachella’, Pulse Evolution is currently developing computer-generated digital humans for entertainment and media applications, such as holographic live performances, virtual reality, augmented reality and artificial intelligence. The Company has a multi-year revenue share agreement with the Estate of Michael Jackson, and the Company also counts the estates of Michael Jackson, Elvis Presley and Marilyn Monroe as significant shareholders.”

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Recent action has seen 83% tacked on to share pricing for the stock in the past week. Furthermore, the stock has registered increased average transaction volume recently, with the past month seeing just under 750% above its longer-run average levels. This should not be overlooked with a float in play that’s tiny — of 13.7 million shares.

Commenting on the acquisition, Recall CEO Alexander Bafer stated, “As we prepare for the first significant commercial introduction of our proprietary Augmented Reality apps, the purchase of Evolution AI and Pulse Evolution really help us to complete the picture.  Our combined companies will stand uniquely among the industry’s first vertically integrated Mixed-Reality companies, from IP-owner to Content Creator to Applications Provider.”

Currently trading at a market capitalization of $38.8M, PLFX has virtually no cash on the books, which stands against about $4M in total current liabilities. One should also note that debt has been growing over recent quarters. PLFX is pulling in trailing 12-month revenues of $696K. However, the company is seeing recent declines on the top-line on a sequential quarterly basis. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $PLFX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $PLFX, either long or short, and we have not been compensated for this article.

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