Pink Sheets Markets Today:
Aug 22, 2016 total dollar volume
By Boyan Angelov
Sep 04, 2014

Valentine Beauty, Inc. (VLBI) Attracts Investors With Product Development

Valentine Beauty, Inc. (VLBI) got market traders' interest with the announcement that the company has developed a new product line. A press release from August 28 stated that VLBI is nearing the release of a new product line. On September 2, VLBI racked up a volume of 20,3 million shares trading hands after announcing the release of the product line.

The high demand for VLBI shares caused a drop in price, as the company ended up closing 10,84% in the red on Tuesday. The venture's expectations were not met, as VLBI opened at a price of $0.01 with a gap up from the previous close. Yesterday, however, the ticker managed to achieve the sought increase in price, closing 27% in the green at $0.0094.VLBI_chart.png

VLBI's product development came about under the guidance of newly appointed COO Mr. Richard Wellner who assumed the position in July. The “VBeauty” collection of skin care products was launched on September 2. VLBI stressed on the product line's naturally derived ingredients. The company gave detailed information on the 10 formulas used in the collection. However, there was no input on how much of the “core product collection” has been produced at this point and what the expectations and goals for the sales are.

As VLBI has pursued the development of a whole new range of products, the venture's financial backing should also be evaluated. The company submitted its latest quarterly report for the period ended June 30, 2014 last week after a delay. Here's what the report accounts for:

  • Cash: $3,397
  • Total current assets: $107,3 thousand
  • Total current liabilities: $787,9 thousand
  • Revenues: $110,6 thousand
  • Net loss: $369,1 thousand

The company's cash and asset reserves have not improved throughout the period. VLBI has continued to accumulate a high amount of liabilities which by now outweigh its assets by over seven times. The only improvement is in the sales, although VLBI's revenues are still far from impressive.

VLBI_logo.jpgCurrently, VLBI has a total outstanding balance of $160,624 on its convertible notes. The company has issued convertible promissory notes in the total amount of $130 thousand in the last quarter. All these notes may be converted for common stock shares at a price of 50% of the average trading price ten days prior to the demand date for conversion. This makes for an increased risk of dilution of VLBI's stock.

As VLBI's recent success came after no more than an initiative to develop the company's product offering, investors should do their research on the penny stock before considering an investment in its shares.

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