Our readers should remember our coverage on Infrax Systems Inc. (OTCMKTS:IFXY). In our previous article, we said that the company should be followed closely, as it was moving an incredible amount of shares. More than 0.5 billion shares were exchanged in November, which meant that many market participants were assessing the company's developments. Company Logo - Infrax Systems Inc OTCMKTS:IFXYAfter carefully assessing the share price and the announcements for two months, we believe that it is time for a new update on the stock. Not only the share price spiked up delivering high returns to our readers, instead the news about a new merger with a cryptocurrency operator seemed to excite the market.Check out the most recent share price action, and note again that the volume is once yet very significant: 1-year chart for IFXYAnother interesting fact to be recorded is that IFXY owns $752,595 in the form of shares of the marijuana company HempTech Corp. (OTCMKTS:HTCO). The share price of this cannabis operator increased at the end of the year. In our opinion, this increase in the valuation of IFXY's stake is partially responsible for the rise in the share price of IFXY. Please, remember that we said in our previous article that something like this could happen:
"We believe that the fact that IFXY has almost 90% of its assets invested in HTCO is affecting its stock price. That’s why the share price of IFXY is moving like that of HTCO." Source
Have a look at the following stock chart of HTCO and form your own opinion: Two months chart for HTCOWhat's new? - The company is entering the cryptocurrency sectorOn November 20, 2017, the company released that on November 7, 2017, Infrax implemented a holding company reorganization under a merger agreement with Infrax, Crypto and Crypto SUB Inc., a Nevada corporation. As a result, Crypto now owns all the outstanding capital stock of Infrax. We believe that this transaction was the origin of the incredible volume that we identified in the exchange. Is it good news?Yes, a new merger means that the company acquires new know-how, and usually assets in a new sector. It is always appreciated by the market. That is not all since in this case, IFXY will be entering the cryptocurrency sector that is growing at a high pace. If the company can bring innovations, the growth of this industry will help the IFXY as well.The company noted that the ticker name would change, thus be alert in this regard. Additionally, we could get to know that the company will now invest in Crypto assets, provide blockchain technology consulting and ICO services.There is more.IFXY also noted that it had signed contracts with three companies on ICO consulting and services, which may raise "millions of dollars in funds." If this is true, we will be talking a lot about the company in 2018, and we can expect quite a bit of share price volatility. We will be informed about new developments, so be sure to subscribe to our email distribution list.Things seem to be moving fast for the company. On December 21, 2017, it was noted that the company had already gained access to OTCIQ Services, from which the newly merged company will be sending financial reports and news releases. Additionally, it was said that the company is in the process of becoming Pink reporting compliant, which will be great, as more market participants will be interested in IFXY.New Financial StatementsOn January 9, 2018, the market received the company's annual report and the new state of the financial statements. Starting with the income statement, no revenues were reported, and the net income showed a loss of $39,008, which, we believe, was widely expected. The most important was the balance sheet report. The amount of total assets is equal to $758,910, the amount of total current liabilities is $511,333, and the entire non-current liabilities is $342,852.The financial figures seemed to create a significant amount of volatility in the market. Have a look at the market reaction on January 9, 2018: 1-month chart for IFXYConclusionCurrently trading with a market cap of $5.9 million, IFXY is an exciting story among small caps.We need to point out to conclude that the number of short sellers diminished dramatically after the company released that it was entering the ICO industry.Have a look at the following table and note how these unethical individuals closed their positions driving the short interest from 374,366 in November to only 10,000 in December:DateShort Interest% ChangeAvg. Daily Share VolumeDays to CoverSplitNew IssueDec 15, 201710,000-97.33117,310,9111.00NoNoNov 30, 2017374,36671.60476,589,8431.00NoNoNov 15, 2017218,158100.00510,348,1251.00NoNoApr 13, 2017139,836100.009,074,4461.00NoNoSourceIt is always relevant to get to know what these short sellers are doing. Many of them know very well when it is time to leave the boat before it gets burnt. In this case, they seem to believe that the upward trend in the share price is likely to continue.We will be updating our subscribers as soon as we know more. For the latest updates on IFXY, sign up below!Disclosure: We have no position in IFXY or HTCO and have not been compensated for this article.Image courtesy of Microsiervos via Flickr
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