Xalles Holdings Inc (OTCMKTS: XALL) may finally be showing signs of rising from a near-death experience as the stock rallies. A recent corporate progress update is pulling the bulls from hiding. Notably, the company updated investors on the OTC filings and the activities lined up for the balance of 2019. The information is seemingly striking the right cord in the market.
XALL stock analysis
At the moment, Xalles stock is experiencing an upsurge which is an indication of bulls streaming back. Of particular interest is the revelation that the delay in the OTC filings of financial statements and disclosures of year end 2018 and first quarter of 2019 is finally over.
Xalles has outlined key strategies which it hopes to accomplish in the short term for the remaining part of 2019. This is a major source of positive sentiment in the stock in addition to the financial disclosures. The firm will dissolve several subsidiaries whose assets and IP will collapse into the larger Xalles Limited Inc.
The stock’s positive sentiment is clear in the latest movement. In the last one week, the share price spiked 200% with the volume traded touching a new high at 12 million. Nonetheless, the day range remains depressed at 0.0072 to 0.0122 compared to the 52 week range of 0.0013 to 0.5.
Nevertheless, such a spike provides critical psychological boost for investors given that the stock has remained depressed close 0.00 since September 2018. In the last six months, the stock has gained 229.03%, 343.48% in the last three months and 168.42% in the last one month. In particular, the gains point to the possibility of changing prospects possibly fueled by the resumption of bitcoin.
A look at the background to XALL
Xalles Holdings Inc. prides itself as an accelerator in the budding FinTech industry. However, since the blockchain wave reached a fever pitch, XALL began to leverage the technology for various solutions like payment auditing and financial reconciliation. At the core of its business is a solid focus on the acquisition of FinTech companies with disruptive business models.
Short-term strategy for subsidiaries
Xalles has been quiet for the better part of Q1 2019. The last time the company made significant news was in early Q4 FY2018 when it announced corporate structural changes and new acquisitions at the core of the FinTech Accelerator program. Notably, the company unveiled a simplified organizational structure where all intellectual property and payment audit services shifted to Xalles Limited from ArrowVista Corporation.
In what sounds like a follow-up to the structural changes, the latest corporate update unveiled the dissolving of several permanent operating companies. Notably, the company collapsed the IP/assets for ArrowVista and BlockForge Inc. into Xalles Limited Inc. and Xalles Technology Inc. respectively.
Particularly, Xalles Limited will now pursue new clients in the payment auditing niche. According to the corporate update, the subsidiary will go after a General Services Administration (GSA) contract to do business with the US Federal Government. In addition, the strategy will also net new X2X clients who will use the updated payment auditing system once active.
On the other hand, Xalles Capital Inc. will spearhead partial acquisition of spin-offs which constitute the FinTech Accelerator Program. This whole short-term strategy is aimed at reviving investor confidence in the company stock. Further, the company expects that the structural simplification of the company will lead to more productivity and possibly elevated price action in the equity markets.
Launch of new products and programs
At the core of the strategic adjustments discussed above is the desire by the company to put to rest the disappointments experienced earlier this year. Concerning the disappointments, Xalles CEO Thomas Nash said:
“While we had some delays against our plan earlier this year, I am pleased to report now that we have improved upon our plans for fundraising and the growth of our subsidiaries and we expect great progress and results in 2019.”
As such, the company has lined up new products, programs and services which should shore up more confidence in its growth prospects. To be sure, Xalles announced in the corporate update that two of the subsidiaries under the FinTech Accelerator Program will launch new services. Notably, Co-Owners Rewards Inc. will unveil a stocks rewards program utilizing a new prepaid card. Also, Global savings Network Inc. will unveil a discount card which will facilitate fundraising for non-profit organizations.
The Fintech environment is fast changing. Particularly, the entry of blockchain creates new opportunities for growth for companies like Xalles which are focused on disruptive startups. Despite the disappointments which XALL faced at the turn of 2019, the company is positioning itself for a massive rebound. Notably, the restructuring of the corporate structure as well as refocusing of some subsidiaries sets the company on a growth trajectory which will lift the stock price with it.
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Disclosure: We have no position in XALL and have not been compensated for this article.