Weyland attributes share decline to Rule 144, sees pressure easing in 2019
Weyland Tech discusses in a press release its recent share price decline and business operations. It says, "The Company has recently disclosed, among other things, the advancement of its AtoZPay subsidiary business and related stock spin-off as well as a significant increase in year over year revenue and gross margins from 2017 to 2018. Despite these business developments the market price of its common stock is very close to a 52-week low of $0.55. The Company believes that the share price decline is primarily related to shareholders taking advantage of Rule 144 to remove restrictive legends on an unusually large number of shares during the last six months. These shareholders participated in private placements in 2015, 2016 and early 2017 and, as a result, could have generally removed restrictive legends and deposited their shares in brokerage accounts for sale six months following their respective purchases during 2015, 2016 and 2017. Many of such shares were deposited and sold, however, many of those shareholders, who purchased at prices from a low of .50 and a high of 4.80 during 2015 to 2017, held their shares until recently. As a result, the Company's average daily volume has increased to 98,810 shares over last 30 days. Comparatively, during January 2018, our average daily volume was approximately 22,000 shares (and the average closing price during the month was over $5.00 per share). According the to the OTCMarkets' Annual Market Review for 2017, the average daily volume of companies' shares listed on the OTCQX during 2017 was 22,500 shares. As a result, the Company believes that the decline in our stock price is related primarily to an unusually high number of shares becoming available for public sale, and in fact, being sold as evidenced by the anomalistic increase in daily volume. So, the supply of shares on the market has been temporarily higher than the reasonably expected demand for our shares. We expect this market sales pressure to diminish during 2019 as we anticipate fewer shares becoming available for public sale than in 2018, and we expect our daily volume to return to an amount closer to historical levels over the longer term." Brent Suen, CEOm comments: "I've purchased 111,000 shares this year in the open market at prices ranging from $1.15 to a high of $2.40 and these shares are under a Company-imposed two year rolling lock-up. Additionally, the last time our market capitalization was at this level was Q1 2016 when quarterly revenues were around $2.2 million compared to Q3 2018 when the Company reported revenue of $8.3 million. Operationally, the Company is progressing well and the pipeline for new business is better than we've seen at any previous point in time. Furthermore, although we are trading on the highest level of the OTC Markets, the OTCQX, we are still not an institutionally driven name in the mobile applications industry sector. That being said, our average daily volume is much higher now than during the past four years of my involvement. Further an uplist to a higher profile market such as the NYSE/MKT or NASDAQ Capital Market remains our stated goal and would open up the visibility for investment in our shares to an entirely new audience of investors unable to buy stocks on Non-Exchange markets."