Glance Technologies Inc (OTCMKTS:GLNNF) has lost more than 60% in market value on growing concerns about the company’s long-term prospects. A management tussle pitying the current board and an ousted Chief Operating Officer is the latest headwind that continues to dent the stock’s sentiments and prospects on Wall Street.
High turnover in traded showers in recent trading sessions continues to elicit suggestions that the stock has hit a critical support level and is ready to bounce back. However, the stock remains susceptible to further declines given that it is trading in a steady downtrend ahead of an upcoming annual general meeting, whose outcome could have serious ramification on the company’s future.
After bouncing to the $0.60 handle, the stock needs to rise and stabilize above the $0.80 handle if it is to be considered a bounce back, after recent sell-off. A close above the $0.80 handle would open the door for the stock to make a push for the $1 mark, seen as the next critical resistance level.
Any sell-off in the short term should be limited to the $0.45 handle seen as a critical support level below which the stock could drop to 52-week lows of $0.11.
Before we carry out a detailed analysis of the developments and catalysts that could affect the stock’s direction of trade let us look at what the company does.
Glance Technologies is a financial technology company that develops and operates a mobile payment processing software and smart-phone applications. The company currently offers a streamlined payment system that helps smartphone users shop, make payments and access digital receipts.
Stock Dividend Reward Promise
Renewed investor interest in Glance Technologies follows the announcement of a new stock dividend reward. The company’s co-founder and largest shareholder, Penny Green, has promised to reward every shareholder with one share of The Yield Growth Corp for every stock owned, should her slate of 5 director Nominees be elected at the upcoming Annual General Meeting.
Yield Growth Company is a different entity from Glance Technologies, where Ms. Green is the president and CEO. The company builds brands and companies in the legal cannabis space. Last year, the company inked a deal that allows it to sublicense Glance Pay Mobile payment technology for use in the cannabis industry.
Glance Technologies currently owns 10,450,000 shares of Yield. Yield Growth Corp has since completed a two for one subdivision of its issued shares which consequently increases Glance’s holdings to 20.9 million shares out of a total $78,091 shares
According to Ms. Yield, the proposal to distribute Yield Shares presents an opportunity for Glance Shareholders to hold shares of a company that is poised to create substantial value in future.
“Yield Growth is positioned to be a leader in the international Cannabis industry,” said Ms. Green. “I’m excited about the prospect of delivering huge value to the Glance Technology shareholders with a stock dividend of 20,900,000 Yield Growth shares. The result would be that shareholders of Glance would own shares in two exciting growth-oriented companies,” said Ms. Green.
Ms. Green stock reward promise continues to fuel talk of a possible boardroom coup at Glance Technologies. Madam Penny was the President and Chief Operating Officer, before her ousting from the company in February.
Green insists she was ousted from the company on pushing the current board to consider the idea of growing Glance through acquisitions, alliances, and strategic partnerships. She insists that the out of touch, the risk-averse board turned down her proposal citing a lack of time to conduct due diligence.
Ever since she’s been putting a spirited fight as she looks to get her way into the company’s management hierarchy. She has already proposed five candidates who she hopes will be elected at the upcoming AGM, given the bumper stock reward that investors stand to walk away with.
Glance Technologies Uncertainty.
Madam Green faces an uphill task to upstage current CEO, Desmond Griffin, her brother in law, who has also put up a slate of five potential directors including a former vice president of professional networking site LinkedIn Corp.
The infighting at Glance is the latest hurdle that the company will have to bypass if it is to pull itself from current lows in the stock market. Late last year, the company was on a roll after announcing plans to create a blockchain platform that people would use to make restaurant bills.
The announcement had a positive impact as the stock skyrocketed to record highs of $3.84 a share. Ever since the stock has been a shadow of itself just as it has been the case with major cryptocurrencies which are down by more than 50% from peak levels.
What Next For Glance Technologies?
Griffin and Green’s spat has been the biggest undoing to Glance Technologies/ sentiments on Wall Street. While the stock looks undervalued at current trading levels, it may be wise to wait for the outcome of the upcoming general meeting, if the stock is to be considered a bounce back play. Until then, it may be wise to pause on any investments in the stock.
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Disclosure: We have no position in GLNNF and have not been compensated for this article.