Presently, our common stock is quoted on the OTC under the symbol “APYP.” We are in our early stages, and an investment in our Company will require a long-term commitment with no certainty of return. Presently, there is limited trading in our stock, and in the absence of an active trading market, investors may have difficulty buying and selling.
The lack of an active market impairs your ability to sell your shares when you wish to sell them or at a price that you consider reasonable. The lack of a dynamic market may also reduce the fair market value of your shares. An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares.
Trading in stocks quoted on the OTC Markets is often thin and characterized by wide fluctuations in trading prices due to many factors that may have little to do with our operations or business prospects. The securities market has experienced significant price and volume fluctuations that are not related to the operating performance of particular companies from time-to-time. These market fluctuations may also materially and adversely affect the market price of shares of our common stock. Moreover, the OTC is not a stock exchange. The trading of securities is often more sporadic than the trading of securities listed on a quotation system like NASDAQ or a national stock exchange like the NYSE. Accordingly, stockholders may have difficulty reselling their shares.
The price of our common stock may be volatile and adversely affected by several factors.
The market price of our common stock could fluctuate significantly in response to various factors and events, including:
|●||our ability to integrate operations, products, and services;|
|●||our ability to execute our business plan;|
|●||operating results below expectations;|
|●||litigation regarding contamination of our dispensary partners’ products;|
|●||our issuance of additional securities, including debt or equity or a combination thereof, which will be necessary to fund our operating expenses;|
|●||announcements of new or similar products by our competitors or us;|
|●||loss of any strategic relationship;|
|●||period-to-period fluctuations in our financial results;|
|●||developments concerning intellectual property rights;|
|●||changes in legal, regulatory, and enforcement frameworks impacting the transportation of cannabis;|
|●||the addition or departure of key personnel;|
|●||announcements by our competitors of acquisitions or our investments, or strategic alliances;|
|●||actual or anticipated fluctuations in our quarterly and annual results and those of other public companies in our Industry;|
|●||the level and changes in our year-over-year revenue growth rate;|
|●||the failure of securities analysts to publish research about us, or shortfalls in our results of operations compared to levels forecast by securities analysts;|
|●||any delisting of our common stock from OTC due to any failure to meet listing requirements;|
|●||economic and other external factors; and|
|●||the general state of the securities market.|
These market and industry factors may materially reduce our common stock market price, regardless of our operating performance. From time-to-time, securities markets have experienced significant price and volume fluctuations that are unrelated to the performance of particular companies.
Our common stock is subject to the “penny stock” rules of the SEC, making transactions in our stock cumbersome and may reduce the value of an investment in our stock.
The SEC has adopted regulations that generally define a “penny stock” as an equity security that has a market price of less than $5.00 per share, subject to specific exemptions. The SEC’s penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the broker-dealer’s compensation, and the salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The penny stock rules generally require that before a transaction in a penny stock occurs, the broker-dealer must make an extraordinary written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s agreement to the transaction. If applicable in the future, these rules may restrict the ability of broker-dealers to sell our common stock and may affect the ability of investors to sell their shares until our common stock no longer is considered a penny stock.
The concentration of ownership of our voting rights among our existing executive officers, directors, and principal stockholders may prevent new investors from influencing significant corporate decisions.
In the aggregate, our executive Todd Violette beneficially owns approximately 82% of our outstanding voting control as of December 31, 2020. As a result, Todd Violette would significantly influence all matters requiring stockholder approval, including the election and removal of directors, any merger, consolidation, sale of all or substantially all of our assets, or other significant corporate transactions.
Phone: (800) 674-3561 EXT 704
Click below for the OTC Markets for APPYEA, Inc.
Ticker Symbol: APYP