Logo - Halitron OTCMKTS:HAON
Judging by the bull action in HAON’s stock price, we believe that saying those good words was excellent on our part. The trading volume recently increased, and the share price spiked from the lows of $0.0002 to hit the one-month highs of $0.0007.
Check the following stock charts before we provide more details:
Two years chart for HAON 1-month chart for HAON
For starters, Halitron, Inc. is an equity investment holding company founded in 2003 and headquartered in Newtown, Connecticut. It is focused on the acquisition of other sales, marketing, and manufacturing businesses with the intention of scaling their existing operations.
We again had a look at the management team of HAON for this update. We found out that the team has a decent amount of expertise in restructuring processes, M&A, and business development. We believe that it is one of the most remarkable assets of HAON. Have a look at it.
The New Developments
On November 2, 2017, LIFES TIME CAPSULE (OTCMKTS:LTCP), in which HAON has invested, introduced Life's Time Capsule's MarketPlace. The innovation consists of a "nation-wide search directory created to show the "Best Of" businesses, professionals, and job seekers within local markets across the country."
The main difference from other portals, like Linkedin, is that this marketplace provides individuals an opportunity to create not only their professional profile but also promote passions, skills, and interests. We cannot tell whether it will be a game changer, but it will be good to remember this site for the future. Also, remember that if it becomes trendy, LTCP's stock price, as well as HAON stock price, will run.
The Market Place - LIFES TIME CAPSULE OTCMKTS:LTCP from http://marketplace.lifestimecapsule.com
Something even more interesting was noted in November. First of all, the company released that it had decided to increase the amount of authorized common stock to 11 billion, which was necessary for the transaction with EROP Capital. The most interesting was that the company would not execute any reverse split to increase the share price and "has elected to defer on any such action for the foreseeable future." We appreciate the decision. Share price should increase as a result of business decisions. Research shows that increases in price as a result of reverse split do not generate any value for the shareholders. The share price did not react to this new information, but we believe that it is very significant.
Things turned even better in December. It was released that revenues are expected to surge over $300,000 in the following quarterly report thanks to the acquisition of The Hopp Company assets earlier in the year. Also, HAON showed that the business is growing at a healthy pace, but it is, at the same time, eliminating the expenses. The company increased its footprint in the Newtown, CT headquarters from 400 sq. ft. to 3,100 sq. besides eliminating the costs associated with its 5,000-sq. ft. New Hyde Park, NY facility. The initiative was said to reduce costs by 63% while improving margins, ultimately growing the bottom line for the shareholders. The market did not react to this information, which is again quite surprising.
If you remember well, in our previous article, we mentioned that HAON is preparing its accounts to up list to the OTCQB platform. Well, in this regard, it was released in December that Freidman LLP was hired to complete the audit for 2017. The uplist is expected during the early part of 2018. This is a clear stock catalyst. If the shares are traded on the OTCQB platform, more people will look at the company, and the liquidity in the market will increase, which is usually followed by increases in the share price.
On December 18, 2017, it released the amount of money that the company will receive from its position on LTCP. It was also noted that HAON would deliver the cash to its shareholders when it is received from LTCP. The following information matters:
"During the two previous quarters, HAON has posted assets for 56 million Restricted LTCP Common Shares and 80 million LTCP Preferred Stock C shares. The LTCP Preferred Stock C is entitled to a dividend payment in 2020 in the form of cash or LTCP common shares in 2020 valued at $3 million." Source
What's making the share price run in January?
First of all, the market got to know that HAON made 110 percent increase in sales; approximately $342,000 over its third quarter 2017. It was released on January 16, 2018, and was not a surprise for the team, which had seen the previous company growth. We believe that some in the market got to know the financial figures and became interested in the stock. It explains the increase in volume and share price.
We will be expecting new financial statements to confirm those revenues. We encourage readers to be alert, as the new economic figures may be an excellent catalyst for the stock price.
Additionally, on January 22, 2018, the company released that it had returned equity and preferred stock to LTCP in exchange for the receipt of a note payable for $3 million, bearing interest of 4%, which will mature in July 2020. We believe that the market appreciated the news. The company lowered its financial risk in LTCP, which is appreciated by shareholders and debtholders.
Furthermore, it was said that it had commenced to buy back shares, which may be causing buying pressure on the stock.
Financials and Conclusion
Currently trading with a market cap of $4.6 million, HAON is an interesting story among small caps. With $39,845 in cash, $2,139,791 million in goodwill, $5,774,437 in assets and $6,450,127 in total liabilities, recapitalization of the balance sheet is the next step.
Be sure to check out our coverage on HAON.
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Disclosure: We have no position in HAON and have not been compensated for this article.Image courtesy of Peter Miller via Flickr
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