WorldFlix Inc (OTCMKTS:WRFX) continues to experience wild price swings at the backdrop of a string of positive developments. The stock sentiments received a significant boost on the company announcing the elimination of dilutable debt. Investors reacted to the news pushing the stock higher. However, the stock has once again come down tumbling.
WorldFlix Price Analysis
The self-proclaimed excellent provider of disruptive cybersecurity and mobile software finds itself in a precarious position. Investor’s sentiments in the company’s long-term prospects appear to have hit all-time lows if recent performance in the stock market is anything to go by. Over the past year, the stock has shed more than 50% in market value.
Amidst the underperformance, the management team appears to be working round the clock all in the effort of reaffirming the company’s growth metrics. Elimination of dilutable debt is one of the developments that the management hopes reaffirm management commitment to pursuing financial health.
The stock is currently languishing at the $0.0004 level and in dire need of new catalysts if it is to bounce back. A recent spike appears to have given short sellers a reason to come back and continue pushing the stock lower, in continuation of the long-term trend.
However, as it stands, WorldFlix could bottom out, once investors take note of a string of positive developments in recent weeks.
What Does WorldFlix Do?
WorldFlix casts itself as a leading developer and provider of innovative and disruptive cybersecurity solutions. The company develops mobile software. Through its subsidiary, the company provides a wide variety of tools as well as software applications for partners to enhance the security of their platforms.
Dilutable Debt Elimination
WorldFlix remains the center of attention, after announcing the elimination of dilutive debt notes tied to Blackbridge Capital Growth. According to the Chief Executive Officer, Brad Listermann, elimination of the dilutive debt marks a significant step in the reshaping of the company’s business stability.
The executive expects the debt elimination to help strengthen the company’s value proposition. For starters, the executive remains optimistic about the company being able to attract new institutional investment banking relationships given the revitalized balance sheet.
“We are blessed to have earned the trust, investment capital, and faith of this elite and stalwart group. Their perseverance enabled us to focus the efforts of our Parameter development team full time and create critical joint venture partnerships,” said Mr. Listermann.
The company is currently interviewing candidates with expertise in securities and finance as it seeks to set up an outside audit committee. The team is to work with the company’s new Chief Financial Officer. The team’s primary goal is to explore new ways of uplifting the stock’s value and marketplace after underperforming, in recent years.
WorldFlix underperformance in the market has mostly had to do with the lack of clarity on the company’s outlook. Early last year the company announced that a West Indies-based digital currency exchange and cryptocurrency trading platform had inquired about the possibility of licensing the company’s post-quantum-computing resistant encryption technology.
Fast forward, the company is yet to provide details on how the deal went and whether the company is generating any value from the deal. In addition, the company did secure a $16 million in new capital from Cardin Capital
It is still unclear how the company went about using the new capital after announcing it intended to use it to bring to market a groundbreaking technology to market.
“We believe strongly in their encryption technologies as well as their ability to execute on their business plan to capitalize on the Company’s products both here in the US and overseas,” said Cardin Capital Managing Partner Gavan Duke at the time.
It does not come as a surprise that WorldFlix finds itself in a precarious position in the market, even on moving to eliminate dilutable debt. The stock’s sentiments in the market are still at all-time lows even as the management continues to reiterate long-term prospects.
Considering the recent pullback, after bouncing from all-time lows, it is becoming increasingly clear that the company needs to serve new groundbreaking catalysts. That is the only way the company will be able to strengthen investor confidence in the stock, to fuel a surge from current lows.
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Disclosure: We have no position in WRFX and have not been compensated for this article.