12 Retech Corp (OTCMKTS:DVGGD) On A Bull Run

Today, we are bringing you a new and fresh company that commercializes an interactive shopping cart; 12 Retech Corp (OTCMKTS:DVGGD). Its recent reverse merger with 12 Hong Kong Limited seems to have excited the market. In only a few days, the share price went from trading close to $1.0 to hit $1.60. Have a look at the recent share price action. We will help you understand why the market is pushing up the company.SourceThe transaction and the businessOn June 27, 2017, the company notified a corporate name change and 6-1 forward stock split to the market. The new steps form part of of its acquisition of 12 Hong Kong Limited, which is headquartered in HK and Japan. The transaction was a share exchange agreement between the two companies. We could find the conditions of the agreement.

1. The Company completes a name change to more accurately reflect the post transaction nature of its business (now completed);
2. The Company completes a six-for-one (6:1) forward split of its common stock (now completed);
3. The Company increases its authorized shares of Common Stock from the present amount of 100,000,000 to 500,000,000 and decreases its authorized shares of undesignated Preferred Stock from the present amount of 100,000,000 to 50,000,000;
4. The Company shall, concurrently with the closing of the Share Exchange Agreement, facilitate the cancellation of 19,800,000 shares of its restricted common stock and such stock shall be returned to the Company's treasury; and,
5. 12RT shall provide the Company with financial statements, including audited and interim financial statements as necessary, with such financial statements being prepared by an independent accounting firm registered with the Public Company Accounting Oversight Board (PCAOB).

What excited the market was mainly the business that the new business combination brings to the company. Have a look at the product and the its explanation as communicated in the press release.Source

"12 Hong Kong Limited ("12RT") is the developer of the "12" next-gen retail shopping technology which seamlessly combines cutting edge digital tech and social networking with real-life for a fun and unique shopping experience. 12 fully integrates in-store, online, and mobile shopping experiences with its patented smart 12Mirrors, 12Mobile app, and 12Kiosks, while an interactive advertising screen provides special offers from shops, restaurants, and service providers. 12 simultaneously meets the needs of shop owners and customers, making in-store shopping fun and entertaining. 12RT currently has operations in Hong Kong and Japan." Source

Recent Developments On June 30, 2017, the acquisition was officially closed. The company made an announcement, wherein some relevant information regarding the amount of shares outstanding was noted.

"Following the closing of the transaction, the Company currently has 78,692,024 shares of Common Stock and 5,000,000 shares of Company Series A Preferred Stock issued and outstanding." Source

Additionally, Angelo Ponzetta, CEO of 12 Hong Kong Limited, explained the completion of the transaction with the following terms:

"The completion of this going-public transaction is another significantly positive milestone for our business strategy and for the development and deployment of our patented next-generation retail shopping technologies. Now with our elevated status as a publicly traded company, we are set to launch our planned expansion strategy and develop new potential opportunities to showcase our cutting-edge solutions and technologies with strong retail partners around the world. I look forward to building a bright future for 12, its partners, and our valued shareholders." Source

On July 6, 2017, the company put out its new corporate website: www.12retech.com. The CEO also noted the significance of this new development.

"The new 12 Retech website will provide our partners, consumers, shareholders, and the media with the latest, the most detailed, and the most accurate information about the Company, our patented and proprietary retail technology products and services, and will serve as a platform for developing new business around the world." Source

Finally, on July 8, 2017, the company put out an update. In the press release, it was explained that the company has already launched its platform that "fully-integrates all aspects of the traditional retail experience with online shopping, entertainment and social networking". 36 months of work had been necessary to design and bring the software to the market. Additionally, some features of the technology being used were remarked.

" The "12" integrated retail platform incorporates several proprietary technologies including custom hardware ("iMirror"/ADScreen, "iKiosk"), ecommerce software, and apps for smartphones and tablets (both iOS and Android) to create a truly unique shopping and entertainment experience for consumers." Source

Finally, it was disclosed that the company has been working with retailers in Asia, Europe, and North America, and new partnerships may be announced within the next 4-8 weeks. This is a catalyst, thus be alert on the stock. Subscribe to our newsletter if you need rapid information about this stock and others.ConclusionThe new transaction seemed to have excited the market, which reacted by pushing up the share price. The terms of the reverse merger agreement were approved and the share price increased every time a condition was approved. In addition, it seems that the new business of the company was appreciated. The announcement of the new website and the fact that the company is networking with retail clients in Asia, Europe, and North America was also appreciated. We identified a catalyst; new partnerships may be announced within the next 4-8 weeks. Hence, be alert on this stock, because it may continue moving higher if good news keeps hitting the market.We will updating out subscribers as soon as we know more. For the latest updates on DVGGD, sign up below!Image courtesy of Calvin Lee via FlickrDisclosure: We have no position in DVGGD and have not been compensated for this article.