Shares of InterCloud Systems, Inc (OTCMKTS:ICLD) are at again today, as the stock is up more than 21% this afternoon. Prior to today, the stock was up 45.2% over the last five trading days. If you recall, we last updated you on the company on March 1, 2017. Trading started to pick up after the company released a statement earlier in the month, that they would be reducing convertible debt with through the sale of their high wire business division. Today’s move is possibly attributed to third-party promotional pieces that is being passed around in vague chatrooms.
Now, according to OTC Markets, the average daily trading volume in InterCloud Systems, Inc. (OTCMKTS: ICLD) has been approximately 26.7M shares, over the last 30 days. However, more than 115M shares traded over the first five hours of trading. The stock price is currently trading around $0.0269
InterCloud Systems, Inc (OTCMKTS: ICLD) has a market cap of $1.4M, based on the close of March 6, 2017. As of yesterday, the company stock is down 34.29% YTD. Over the last month it has traded in a range between $0.01 and $1.15.
Some recent highlights from the company’s last 10-Q include:
-The Company’s management believes that there is substantial doubt about the Company’s ability to continue as a going concern. The Company believes that its available cash balance as of the date of this filing will not be sufficient to fund its anticipated level of operations for at least the next 12 months. The Company’s management believes the Company’s ability to continue operations depends on its ability to sustain and grow revenue and results of operations as well as the Company’s ability to access capital markets when necessary to accomplish the Company’s strategic objectives.
-The Company’s management believes that the Company will continue to incur losses for the immediate future. For the three and nine months ended September 30, 2016, the Company generated gross profits from operations but failed to achieve positive cash flow from operations. The Company expects to finance future cash needs from the results of operations and the sale of certain operating assets or businesses. Depending on the results of operations, the Company may need additional equity or debt financing until the Company can achieve profitability and positive cash flows from operating activities, if ever.
About InterCloud Systems, Inc.
We are a global single-source provider of value-added services for both corporate enterprises and service providers. We offer cloud and managed services, professional consulting services and voice, data and optical solutions to assist our customers in meeting their changing technology demands. Our cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing to us rather than the capital expense model that has dominated in recent decades in information technology (IT) infrastructure management. Our professional services groups offer a broad range of solutions, including application development teams, analytics, project management, program management, telecom network management and field services. Our engineering, design, installation and maintenance services support the build-out and operation of some of the most advanced enterprise, fiber optic, Ethernet and wireless networks.
Most Recent Headline:
InterCloud Reduces Convertible Debt With The Sale Of High Wire Business Division
NEW YORK, March 01, 2017 (GLOBE NEWSWIRE) — InterCloud Systems, Inc. (the “Company” or “InterCloud”) (NASDAQ:ICLD), a leading provider of cloud networking orchestration and automation solutions and services, today announced the sale of the High Wire Networks division of ADEX Corporation. ADEX’s High Wire division contracted with telecommunications infrastructure manufacturers to install the manufacturer’s products. The asset was originally acquired by ADEX in 2014 for less than $1.0 million and accounted for approximately $11.0 million in annual revenue in 2016. Under the terms of this asset sale, InterCloud received $4.0 million in cash and is expected to receive an additional working capital adjustment of approximately $0.9 million, to be paid in six months. The proceeds from this sale were used to reduce secured outstanding debt.
Mark Munro, CEO of InterCloud stated, “The sale of this non-core business asset is a continued realignment of InterCloud’s business strategy and reduction of our outstanding liabilities. This sale has given InterCloud the opportunity to continue to improve our balance sheet and reduce the amount of convertible debt causing shareholder dilution. We are continuing to explore other non-core asset sales as well as a conventional asset based lending solution, to reduce the exposure to remaining convertible debentures.”
ICLD is hanging out near it’s 52-week lows, despite a recent surge in activity in the name. Clearly, there are still tons of question marks with the company. The best way for you to stay in touch with ICLD is to sign up to our newsletter below. It’s currently free, but we might decide to change that soon.