While shares of Reeltime Rentals Inc. (OTCMKTS:RLTR) were up over 144% just two days ago after the company announced that they would be merging with an e-cigarette manufacturer, Bellatora Inc., today shares are plunging. The cause? The company has just announced that the merger with Bellatora is now off after ‘material discrepancies and insurmountable contractual issues’.
“ReelTime is in a very strong and unique position with the ReelTime VR platform and the company will be dedicating its resources solely to the core business objectives of the Company,” explained James Hodge, CEO of Reeltime Rentals Inc. (OTCMKTS:RLTR). We wish Bellatora luck in their separate business dealings. We further apologize for any confusion arising from the rescinded contemplated transaction.”
Basically what this now means is that the company will continue operating as if none of this excitement had ever occurred. Considering that prior to the merger announcement shares were hovering at around $0.0004, despite today’s 50% drop in price, the stock may have an additional 50% to fall from here before all is said and done. Many shareholders are obviously expressing discontent with management after many had purchased the stock at prices twice what they are currently trading at after the merger announcement. While it’s always difficult to distinguish if dishonesty was involved within the runup of a micro penny stock, it’s possible that the company’s CEO is telling the truth and deal simply fell through.
The stock has fallen 58.33% or $0.0007 following this negative news, hitting $0.0005 per share. About 12.49 million shares traded hands or 323.39% up from the average. RLTR has declined 61.29% since June 11, 2015 and is downtrending. It has underperformed the S&P500 by 56.60%.
Reeltime Rentals Inc. is in the business of identifying and monetizing individuals and companies who have been thrust into the public eye through the media. The company has a market cap of $135,400. This awareness may come as a result of being featured on a TV show, newsworthy event, or viral social media exposure. It currently has negative earnings. Reeltime provides services to capitalize on such opportunity via merchandising, leveraging exposure into relationships, creating and marketing new revenue streams for exiting products and launching new products.