Investview Inc (OTCMKTS:INVU) is a penny play that has started to engage some major focus among traders and investors as prices launch higher in recent trade. The principal catalyst for the explosion on Thursday is clearly the company’s engagement in what appears to us to likely be a reverse merger process, though that is not yet explicitly the case. The “acquisition” was noted in the primary press release to have “resulted in a change of control” of the company. But a subsequent press release still notes no change in the CEO position for INVU.
The acquired entity is Wealth Generators LLC, a financial education, research, and tools provider. As noted in the release, the move “expands Investview’s business from predominately US markets into international countries such as Germany, Austria, Mexico, and throughout other parts of Europe including the UK. The acquisition is effective as of March 31, 2017. Wealth Generators’ revenues for Q1 have increased by 15% over the same period last year. In the process, INVU has reduced its balance sheet debt by approximately $2.3 million dollars by converting note and bondholders into equity.”
Investview Inc (OTCMKTS:INVU) trumpets itself as a diversified Financial Services company “providing our customers with a plethora of services & opportunities through our operating subsidiaries and partners”.
The company’s acquisition of Wealth Generators LLC may or may not actually turn out to be a reverse merger clothed as a straight M&A move. Time will tell. In any case, it reshapes what we will expect from the company on an operational basis.
One simple observation to drive this point home is this: The acquisition press release was the first company press release of any kind in over two years. This further suggests that we are seeing a transformation that ultimately will result in a company name change, and perhaps a new ticker at some point.
According to company materials, “Wealth Generators, LLC is a Utah-based financial education, research, and tools provider for the self-directed investor. Wealth Generators distributes its programs and services through independent distributors who are paid according to the company’s bonus plan.”
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As noted above, the move to digest Wealth Generators LLC will clearly redefine operations and the plan going forward for the whole company. This was made clear in both recent press releases.
“The business combination between Investview and Wealth Generators is a significant and timely transaction that will permit Investview to meet immediate and long-term cash flow needs while establishing new and meaningful revenue streams,” explains Dr. Joseph Louro, CEO of Investview. “It is time for a new chapter, made possible through relentless and difficult efforts to find the right firm for our merger. During the past 6 months, we have continued to meet all the statutory requirements, audits and reporting corporate governance matters while retiring debt and safeguarding corporate assets,” said Dr. Louro. “With that, this great opportunity to increase shareholder value was born. The Wealth Generators business model is a new version of our legacy business utilizing innovative technology and marketing techniques — and is the right fit for our company. We anticipate this revenue will be exponentially greater than we have previously experienced as a firm. This revenue, combined with our streamlined operations will result in significant corporate growth and value for our shareholders,” concluded Louro.
Recent action has seen 1700% tacked on to share pricing for the listing in the past month, with by far the majority of that move coming in the past 24 hours. This action is running counter to the larger trend in the name. In addition, the company has benefitted from a jump in recent trading volume to the tune of 670% over the long run average.
Traders should note this as important with a float in play that’s rather small — of 33.9M shares. It’s something the veterans know to key on: a restricted trading float and a jump in trading volume can crimp supply and push share prices higher.
Now commanding a market cap of $2.2M, INVU has virtually no cash on the books, which is balanced by about $2M in total current liabilities. INVU is pulling in trailing 12-month revenues of $184K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -75.9%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $INVU stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!