The OTC often contains distressed asset opportunities, with One Horizon Group Inc (OTCMKTS:OHGI) representing one of the most recent and obvious. The stock dove hard on Friday as it started trading on the OTC following a difficult delisting from the Nasdaq. To further flesh out the story, the company just announced that it has notified The Nasdaq Stock Market LLC of its intent to withdraw its common stock, par value $0.0001 per share, from listing on the NASDAQ Capital Market.
According to the release, “The Company intends to file with the Securities and Exchange Commission, and with NASDAQ, a Form 25 relating to the delisting of its common stock on March 8, 2019. It is anticipated that the delisting will become effective on March 18, 2019, 10 days after filing the Form 25. The Company intends to file an application to have its common stock quoted on the OTCQB tier of the OTC Markets. The Company does not expect the transition to the OTCQB to affect the Company’s business operations.”
One Horizon Group Inc (OTCMKTS:OHGI) bills itself as a company that develops and licenses digitally secure messaging software primarily to gaming, security, and educational markets in Hong Kong, China, and the United Kingdom.
The company operates 123Wish, a subscription-based marketplace that provides users with the experiences of social media influencers, including celebrities, professional athletes, fashion designers, and artists; and provides music production, artist representation, and digital media services.
One Horizon Group, Inc. is based in London, the United Kingdom.
According to company materials, “One Horizon Group, Inc. is a media and digital technology acquisition and software company, which owns Love Media House, a full-service music production, artist representation and digital media business and Horizon Secure Messaging, an Asia-based secure messaging business. The Company also holds a majority interest in 123Wish, a subscription-based, experience marketplace, as well as majority interest in Browning Productions & Entertainment, Inc., a full-service digital media and television production company. Moreover, One Horizon Group, Inc., through its subsidiaries, develops solutions for network operators and service providers in the mobile, fixed, and satellite communications markets. It provides bandwidth-efficient mobile VoIP platform for smartphones through its SmartPacket technology; and a range of other optimized data applications, including messaging and mobile advertising. The Company’s products include mobile apps; desktop apps; VoIP PBX; VoIP switches; controlled, bandwidth-efficient access to the Internet; and Global Exchange, a core network of the system that authenticates, routes, and manages all calls over the network. The Company has operations in Switzerland, the United Kingdom, China, India, Singapore and Hong Kong. One Horizon Group, Inc. was founded in 2001 and is headquartered in Switzerland.”
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As noted above, OHGI just announced that it has notified The Nasdaq Stock Market LLC of its intent to withdraw its common stock, par value $0.0001 per share, from listing on the NASDAQ Capital Market.
The market didn’t like that news at all. Shares of OHGI have now taken a hit of about -54% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -74%. What’s more, the listing has seen interest climb, with an increase in recent trading volume of 12% beyond its prior sustained average level.
According to the release, “On May 10, 2018, the Company received notice from NASDAQ indicating that the Company’s common stock did not meet the minimum closing bid price required to maintain continued listing on The NASDAQ Capital Market. Consistent with the NASDAQ Listing Rules, we received two 180-day grace periods to regain compliance. The second grace period is set to expire on May 6, 2019.”
Now commanding a market cap of $3.27M, OHGI has a reserve ($535K) of cash on the books, which compares with about $742K in total current liabilities. OHGI is pulling in trailing 12-month revenues of $1.1M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -20.2%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $OHGI 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 $OHGI, either long or short, and we have not been compensated for this article.