CEO Rory J. Cutaia highlighted the firm had cash in the bank worth about $17.2 million and a “ridiculously small, low interest (3.75%), low payment, 30-year term SBA loan of approximately $125,000.”
Shares of sales enablement firm Verb Technology Company (VERB) soared over 77% on Friday after CEO Rory J. Cutaia explained in a letter to shareholders why he thinks VERB stock should trade above $22 apiece versus its current price of just above $9.
Cutaia highlighted the firm had cash in the bank worth about $17.2 million and a “ridiculously small, low interest (3.75%), low payment, 30-year term SBA loan of approximately $125,000.”
“…this means if we traded at nothing more than our net cash value, the stock should be trading at more than $22 per share,” he asserted.
The CEO also projected that third quarter results will be exceedingly better than the second quarter results as the firm’s business units are now hitting their stride. Cutaia further predicted that the fourth quarter will greatly exceed third-quarter results.
The projections come at a time when the firm has restructured and realigned its business. It sold an unprofitable business unit that was operating in a challenging business sector and, since then, has restructured VERB as a holding company with three distinct business units. The firm is yet to announce one of these businesses.
“Each is managed by a separate management team, incentivized for success, and all three are currently generating revenue and are growing and growing at a rate that far outpaces the rate of revenue growth we have ever experienced,” the CEO said.
He further asserted that there’s no hedge fund that holds cheap VERB shares they plan to short against warrants that they picked up for little or no consideration through a bad financing deal.
Last week, the firm’s stockholders voted to authorize the board of directors to institute a 1-for-200 reverse stock split of its common stock shares. Cutaia said the firm did everything possible to avoid the reverse split but, in the end, had to place options before the shareholders. Notably, the majority of the shareholders voted in favor of a reverse stock split in order to stay listed on Nasdaq.
“As and when we see the stock trading in the range we believe it should – I will absolutely advocate for, and petition our Board to consider a FORWARD stock split,” he asserted.
Following the development, retail chatter surrounding the stock spiked, with total message volumes on track to reach 10x their monthly average on Friday.
Stocktwits users with a bullish outlook believe the stock presents a good buying opportunity at current levels.
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