Alliance Creative Group, Inc. ACGX
We first began coverage of ACGX back on November 1st, and on that same day, we saw a low of .01, before the stock surged to .0179 prior to a .0145 close.
Since that time it has been bouncing around between a penny and .0175, as it seems flippers are having a grand old time buying near a penny, and flipping out for quick gains of up to 50-75% and as a result the stock is trading in a fairly tight channel. The 100DMA of .0178 is the key resistance at the top of said channel, while the 20DMA of .0119 seems to be the support level.
Once these flippers are churned out, and the resistance is broken, we think ACGX has a good chance of breaking out and perhaps seeing even a triple-digit gain.
The positive news released this morning is very encouraging, alluding to easier times ahead with regard to the interest owed on the company’s debt. The change in banks will allow for more financial freedom for ACGX, which in turn could translate to added value on the stock.
Alliance Creative Group (ACGX) Agreed to Amendment and Extension with Largest Debt Holder
Company Also Changes Banking Relationship to Increase Credit Line while Reducing Interest Rate
CHICAGO, Nov. 8, 2012 /PRNewswire via COMTEX/ — Alliance Creative Group, Inc., (http://www.AllianceCreativeGroup.com) (Stock Symbol: ACGX.pk) is pleased to announce that it has come to terms with its largest debt holder, Golden State Equity Investors, Inc. The parties have amended the terms of the convertible debenture and warrant agreement to settle on all old interest payments, reduce the future interest rate and extend the agreement for 5 years to 2017.
As of October 30, 2012 the Balance on the Prior Advance was $243,123 and the balance on the debenture was $141,812. The old interest rate on the debenture was 7.75%, the new rate will be 3.75%. Upon the exercise of its conversion rights under the debenture Golden State can convert to common shares at a rate of 80% of the past 3 day trading average price. Additionally, as long as the company is not in default of this agreement by June 30, 2013 the judgment against the former CEO, Paul Sorkin, will be deemed to be satisfied in full.
The Company has also changed banks from Centrust, a small local bank, to RBS Citizens, a very large international bank. The change was to help consolidate liabilities while reducing the interest rate significantly and increasing its lending limits.
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Extended Watchlist:
STLK, CGRA, PTN, MTSL, VIZS
