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LIG Assets Inc (OTCMKTS: LIGA) On A Bull Run

LIG Assets Inc (OTCMKTS: LIGA) On A Bull Run
Written by
Jarrod Wesson
Published on
April 20, 2017
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Do you believe that Trump's new plans will be beneficial for the real estate business? If the answer is yes, then you will appreciate the next profile: LIG Assets Inc (OTCMKTS: LIGA). LIG buys and develops residential and commercial real estate properties in Texas. It is a company based in Texas and founded in 2008. Trump may be a catalyst for the company, but this is not all. The most recent decisions of the Board of Directors have made the share price move. We will explain you what happened in this piece, but first of all have look at the chart price of the company, note the recent uptrend and also the large amount of shares exchanged: SourceBusiness and teamLIG states on its website that it is "rapid growth company in the green and sustainable sectors via nationwide residential and commercial real estate developments, joint venture partnerships, mergers, strategic alliances and acquisitions". The associates who chose which assets to buy in this trust are the following:

  • KENNETH WIEDRICH: he is an experienced executive in financial and strategic planning, accounting and financial operations. He also has adequate experience of dealing with the Board of Directors, audit firms and SEC. He has been CFO of CLX Investment Co., Inc., GTREX Capital, Inc., S3 Investment Co., Inc., Now Holdings Corp. among others.
  • CHARLES GAMBINO: he is a turnaround expert and has gained expertise of working for 3o years for relevant companies, such as Panavision, Panavision Hollywood, General Camera NY, Cinepro, Image Devices International etc. He is the person who will be in charge of supervising the operations of the companies bought.
  • ARIC SIMONS: he is the attorney of the firm, specialized in real estate and entertainment law and has gained his experience working for Robinson & Simons E.P.

We believe that the team is quite experienced and has also connections with important firms in the field. Investors can obtain further information from this site, but so far what we have seen looks pretty good.New DevelopmentsInvestors seem to appreciate much from some of the recent announcements made by the company, so we believe that we need to note them in this piece. On April 17, 2017, LIG announced the acquisition of 20% interest in a new business entity; Earth Revival LLC. The company remarked the work of one of the employees of the new firm, environmentalist and sustainable pioneer Robert Plarr. Here is part of the statement made by LIGA Chairman of the Board, Aric Simons, regarding this company and Mr Plarr:

"Earth Revival is truly composed of some of the greatest minds in sustainability -- from healthy buildings to groundbreaking medical and well-being treatments and innovative, superior building products. LIGA is primarily responsible for real estate development and construction, but each Division of the Company works symbiotically with each other. For example, LIGA is already selling products that are developed and produced by the Health Products Division. Also, while Medical personnel will administer stem cell treatments, LIGA will construct health centers that ensure a safe environment most conducive for recovery and healing." Source

In addition to the communication on April 13, 2017, the company released a letter to LIGA shareholders signed by Aric Simons, which also had a very positive effect on the share price. You can find it on Yahoo Finance. The most remarkable statements made were that the company received several shareholders that had the opportunity to see the products and materials that the company uses and that were shown in the LIGA 2016 - Sustainability Impact Conference. In addition, the business executive stated that 75% of the stock is held by new & long term shareholders, which is, in our opinion, an evident proof of the trust that shareholder have on the new developments of the firm.Reduction of the shares outstandingThere is another thing that looks very good here. The company has announced several changes in the amount of shares outstanding and has also changed several features of the convertible securities sold to benefit shareholders.On January 4, 2017, the Board decided to reduce the conversion rate of its preferred stock from 50 to 1 to only 1 to 1. This means that the holders of this securities will be able to obtain less shares for each preferred stock. So, the potential dilution was extremely reduced. In total, 2.45 billion new common shares will not be issued. In addition to this new information, the Board announced the following measures:

  • keep the total authorized common share count at 2.4 billion shares
  • not conduct any reverse split below .05 per share
  • not issue any additional classes of stock for at least three years.

What does it mean? It means that shareholders are being protected by the Board of Directors. The company's shareholders have been unfairly diluted in the past, but from now on, this will not happen anymore. Mr Simons, member of the Board of Directors, added the following statement in the press release:

"Our primary goals have been clear; to build a high growth, profitable company and ensure the integrity of our actions. In our effect to attain success, we want to make certain we have our shareholders' best interest in mind and be certain everyone is playing by the rules. If a restricted shareholder has acted improperly, we will take action to demand return of the shares to treasury or place a lien of those holdings until all questions are resolved." Source

ConclusionLIG Assets seems not only to have an experienced team, but it is also delivering very good news to the market. Additionally, the CEO communicates a lot using letters to shareholders increasing the ability for the market to price the shares of the company efficiently. Finally, the changes in the conversion rate of the preferred stock and the other announcements that prevent the Board from diluting the shareholders has also been celebrated by the market. Like we always say, do your own research and keep yourself informed about the companies you're invested in.We will be updating our subscribers as soon as we know more. For the latest updates on LIGA, sign up below!Disclosure: We have no position in LIGA and have not been compensated for this article.

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