Drawing to the close of its custodianship, Kat Exploration Inc (OTC: KATX) has been building on anticipation for the termination of its custodianship – currently schedule for May 11th. Following the release of its quarterly and annual reports, KATX stock saw a roughly 458% run over two weeks. Now, investors are waiting on impending merger news for this clean shell.
KATX Stock News
With the help of its custodian – Acropolis Capital Partners – the company has become current again. Established in 2005, KATX historically operated in the minerals industry with a subsidiary in the automotive sector. The company last filed with the OTC market in 2015 and since then it has had no operations. This summer, KATX came under the custodianship of Acropolis Capital Partners which specializes in investments spanning real estate, hedge funds, public markets, and private equity. Caren Currier – one of Acropolis’ directors – has since become the sole officer and director of KATX.
Widely regarded as merger guru, Currier has helped facilitate mergers for numerous OTC companies. Investors are bullish on KATX due to the massive runs of companies Currier has been a part of including Axis Technologies Group, Inc. (OTC: AXTG), Indo Global Exchanges Pte Ltd (OTC: IGEX), and One World Universe (OTC: OWUV).
Exercising her rights as custodian, Currier paid off the company’s outstanding liabilities, appointed new directors and officers, held a shareholders meeting as well as completed the company’s filings. In compensation for the custodian’s hard work, Acropolis Capital Partner was granted 1 thousand restricted shares.
KATX could be an attractive merger candidate, considering its share structure with a $9 million market cap and 2 billion AS, the company has 1.7 billion outstanding shares. KATX is currently seeking reverse merger candidates that are in a strong position in their market. Looking for diverse and experienced management teams, KATX’s merger candidate should have the potential for growth either through new technology or expansion. However, KATX is primarily interested in whether the candidate can advance their business in the marketplace as well as the availability of required funds provided through the candidate’s operations, issuance of new shares, or growth strategies.
At this time, the company has not disclosed any details about potential merger candidates or the sectors it might be operating in. However, investors are speculating that the merger candidate could bring significant value to the company – potentially making KATX a cheap investment ahead of the merger considering it’s low market cap.
Although KATX’s volume reached 49 million on January 6th – a significant increase from its average volume of 7 million – investors are waiting for more volume to send it and many are expecting it could break the penny mark. Considering that the stock has weak resistances past this point, if it breaks through it could hit its ATH at $.017. Many investors are expecting a leg up in the coming days as expected PR could be released from KATX’s management regarding its hotly anticipated merger.
Short volume has seen a spike following KATX’s update.
*Updated April 29th
KATX stock has been picking up steam after releasing its annual and quarterly reports in March – triggering a roughly 458% increase over the following two weeks. Now consolidating between $.005 and $.006, anticipation is building for termination of the company’s custodianship on May 11th.
According to its financial report, KATX is “actively seeking a merger, reverse merger, acquisition or business combination opportunities with an operating business or other financial transaction opportunities”. At this time, KATX still has not restricted its search to a specific industry, or geographical location.
With so little information available, investors have been free to speculate who the merger candidate might be. Many are bullish on this prospect considering the time that has been given to securing a worthwhile merger candidate for the shell. It’s also worth noting the KATX is free of debt which could make it an attractive merger candidate.
Already SEC reporting, KATX stock could be a suitable swing hold leading up to the termination of its custodianship. However, those bullish on Caren Currier’s ability to secure a promising merger candidate for the shell could hold their shares for the eventual merger announcement.
In July KATX stock soared past a penny and depending on how these catalysts play out, it could see a penny break leading up to its merger after hitting $.0078 in its initial run up. However, investors should watch for a possible dip following the custodianship termination.
Media Sentiment
@ChaseMacTrades is watching KATX for its custo discharge
Technical Analysis
KATX stock is currently trading at $.0058 – near its resistance at .006. Meanwhile it shows a support at .005 and a secondary support at .0045. The MACD is bullish while the RSI moves up from 58. Accumulation has been holding steady following KATX’s run up.
Given its impending catalyst, bullish investors could potentially add shares near $.005 as anticipation builds for the custodianship termination on May 11th. But KATX stock is likely one to watch beyond that for news of its merger. With a market cap of $10.4 million, the stock could be cheap at these levels depending on the merging company.
KATX Stock Forecast
With an experienced custodian and no debt, KATX has the potential to find an attractive merger candidate. Considering Caren Currier’s experience and history of executing profitable mergers, there are many reasons to be bullish on KATX stock. For this reason, KATX stock could be a suitable swing play or a long-term hold depending on investors’ conviction.
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