A binding LOI on prospective equity financing of up to $1 million shot the stock price of Tactical Air Defense Services, Inc. (PINK:TADF) up 77% yesterday. As a result, TADF stock rallied to its late-December level of $0.0023, while 133.7 million TADF shares changed hands, which is more than five times greater than the average figure, as well as a 40-week high for the company.
Without much ado, the ongoing promotion in favour of TADF stock, which had commenced back in mid-February, was relaunched yesterday as interested parties pooled another $4K to keep the advertising flame alive. Judging from yesterday's spike, the investors' awareness program seems to be exceeding all expectations. Yet, when the campaign will achieve its full potential is still far from clear. The fact that it briefly reached the $0.0026 mark yesterday suggests that a new, back-to-back surge of such a magnitude may not be happening.
Tactical Air Defense Services occupies the OTCQB market tier. Therefore, its reporting status is as light as it can possibly get. The company is a regular SEC filer and provides tactical aviation training, as well as a number of support services.
However, TADF recently informed the SEC that it would be unable to submit its annual 2010 report in time. As it seems, its auditors have yet to finish the official examination of the company's financial record. Therefore, the most current available report covers Q3 of 2010. As of Sep. 30, TADF has:
Judging from the pretty dire financial health of the company, the above mentioned LOI will hardly make a positive impact, at least in the short run. Indeed, the company will pay out the debt by issuing preferred stock providing for a 12% annual coupon payment. Unless TADF comes across a commercially viable business idea, it will most probably contunie to linger on the lower end of the sub-penny stock market.