One Horizon Group Inc (OTCMKTS:OHGI) is taking a beating in the market on losing its status in the Nasdaq exchange. Delisting sums up the company’s woes that have seen it shed a substantial amount of market value.
Share Price Analysis
The stock has since plunged to all-time lows and at risk of plunging further, given the soaring short selling pressure. The management, however, remains optimistic about the company’s long term prospects even on seeing the stock shed more than 90% in market value over the past year.
According to the Chief Executive Officer, Mark White, delisting from the NASDAQ will not have an impact on plans to execute on a strategy of building out a premier media and digital technology company. The company has since completed the acquisition of a majority interest in MAHAM as it continues to pursue new avenues for reinvigorating growth.
Even on the management moving to reaffirm the company’s prospects, the stock has continued to edge lower. The announcement that the company has completed the sale a majority stake in Banana Whale Studios appears to have spooked investors.
The stock is currently languishing at the $0.03 level, which happens to be its all-time lows. The stock looks increasingly vulnerable given the underlying long-term bear trend. To avert further slides, One Horizon Group will have to rise and stabilize above the $0.08 level.
For the stock to turn bullish in the short term, then it will have to take out the $0.18 mark, a critical resistance level. Below the $0.018 level, the stock remains vulnerable to further drops.
What Does One Horizon Group Do?
One Horizon Group casts itself as a digital media technology company. The company owns Love Media House that is a full-service music production digital media business. It also develops and licenses digitally secure messaging software used in gaming, security, and educational markets.
Why is One Horizon Group Imploding?
Investors have continued to push One Horizon Group lower on the confirmation that the stock will no longer trade on the NASDAQ market. Delisting follows failure by the company to meet minimum listing requirements. A plunge in share price below the $1 a share level has come to haunt the stock all but fuelling the sell-off wave.
Amidst the delisting woes, The Chief Executive Officer has continued to reiterate the company’s prospects. According to the CEO, focus shifts towards building a premier media and digital technologies company.
“Despite all this progress, we experienced challenges meeting the qualifications for NASDAQ. Both the management and Board agreed it would be in our best interest to voluntarily delist and enter the OTCQB market, which will allow us to further execute on our business strategy while reducing our public company expenses,” said Mr. White.
MAHAM and 123Wish Prospects
One Horizon Group has since completed a majority stake acquisition in MAHAM, a unique yoga interest entity known to attract celebrities, models and wellness seekers. MAHAM offers 60-minute high-intensity yoga classes. The service has so far succeeded in attracting top celebrities moving around the Miami area.
MAHAM acquisition comes at a time when One Horizon Group is gaining traction on the expansion of its 123Wish platform technologies. Plans are underway to focus on the two business units, as part of a new growth strategy.
One Horizon Group has already received a $2 million boost following the sale of a majority stake in Banana Whale Studios. With the new finances, the company remains well positioned to pursue growth opportunities around MAHAM and 123Wish platform.
“Upon achievement of several near-term milestones, our plan is to resubmit to list on a national exchange. In the meantime, I believe we have an outstanding team in place, with a solid growth strategy to drive shareholder value,” said Mr. White.
What Next For One Horizon Group
Delisting from the NASDAQ exchange is a big blow for One Horizon Group. However, management has sought to reinvigorate the company’s prospects by acquiring MAHAM yoga classes and touting 123Wish prospects.
As it stands, the stock looks set to remain under pressure until the company serves groundbreaking catalysts to strengthen investor confidence in the stock. Until then it might be wise to take a back a seat and wait for further confirmation.
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Disclosure: We have no position in OHGI and have not been compensated for this article.