Crednology Holding Corp (OTCMKTS:COHO) shares retreated 3.23% on Monday and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.01. The company has a market cap of $3.79 million at 449.22 million shares outstanding.
Formerly known as Cooper Holding Corp, Crednology Holding Corp is a holding company that is an acquirer and operator of subsidiaries. These subsidiaries concentrate their activities within the financial and credit industry. The company is a provider of technology and software to the credit industry, and offers analytical solutions to real estate professionals, mortgage originators, property management and financial advisors. Among these are CreditDNA, Inc, ScoreNavigator, Inc and Score-Up, Inc.
CreditDNA, Inc. is an online Credit and Financial Management company that uses software to educate the public in having a credit profile and maximizing their credit potential. ScoreNavigator, Inc is a credit data analysis company, which provides ScoreNavigator, a credit analysis tool designed for consumers and loan originators. Score-Up, Inc. is a credit management company, which provides user with up-to-date credit education material and user’s own credit coach.
In a press release this week, Crednology Holding Corp announced the acquisition of two cloud computing companies, 4Service and ITatOnce. This was conducted through an issuance of one class C preferential share to 4Service Cloud Tech AG in full payment for 100% of the stock of its subsidiaries Riteman, Inc. and Landmark PMG LLC. This share will have the ability to convert to 90% of the outstanding common stock of Crednology and will carry a 90% voting right until conversion.
Under this arrangement, 4Service Cloud Tech AG will assume responsibility for some debt of Crednology including funds due to the former CEO Rusty Breeze, as well as amounts due to the State of Delaware and Crednology’s accountants. In line with this, the current board of Directors has resigned and a new Board will be appointed. For now, current CEO of 4Service Orie Rechtman will serve as the CEO and Secretary of Crednology and further Board members will be appointed shortly.
4Service Cloud Tech AG is excited to become involved with a US public company. We anticipate that the planned growth of the business will result in much improved profitability and enhanced shareholder value,” remarked CEO Orie Rechtman.
Also in this arrangement, CreditDNA, Inc. and ScoreNavigator, Inc. will be sold to Rusty Breeze for $160,000, which is equivalent to the amount of outstanding salaries due to him. The acquisition was made in October 14 and the transactions were completed in October 17.
With the market for cloud computing growing aggressively, these acquisitions could eventually prove to be very profitable for Crednology Holding Corp, although this shakeup in company structure and leadership could lead to dips. On the stock’s daily time frame, a long spike and sharp in volume can be noticed.
This means that investors are putting more attention into the company, keeping tabs on how the changes might pan out. More signs of stability, possibly after the appointment of the rest of the board of Directors, could allow Crednology Holding Corp shares to resume its ascent. As with most company acquisitions, stock price dips considerably on shelling out of company capital or reduction of cash holdings, but more sustained gains could be in the cards depending on how the company realigns its strategy to take advantage of evolving market trends.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital
