Atrinsic (ATRN) Goes From Hot Penny Stock To Lights Out

As if delisting from the Nasdaq wasn’t enough, Atrinsic, Inc. (OTC Pink:ATRN.PK) dropped 32.75% after announcing the penny stock will no longer file reports. CEO Nathan Fong filed six reports on behalf of Atrinsic with the SEC to deregister all of the shares of ATRN Common Stock that remain unsold and announced that the company will not be filing its Annual 10-K or any future reports under the Securities Exchange Act of 1934.

ATRN claims that the board of directors decided that it would be in the best interest of stakeholders in the penny stock to preserve what limited cash resources are available by not incurring the expense of preparing and filing the Annual Report on Form 10-K and any future reports.

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The filing of Form 15 filing and deregistration of unsold shares is directly in relation to the prior 8K’s filed regarding:

1994 Stock Incentive Plan

2007 Stock Incentive Plan, 2005 Stock Incentive Plan and options granted to Burton Katz, former Atrinsic CEO

2009 Stock Incentive Plan

2011 Filed Prospectus of an aggregate of 5,963,857 shares

Shockingly ironic is that if you were to contact the internet-search marketing company via email through their website, the following reply is what you can expect to receive:

Thanks for signing up for Atrinsic Alerts. We have received your information and will keep you up to date with Atrinsic news and activities. In the meantime, if you have any questions you can reach me directly at +1 (212) 716-1977, or [email protected]

Yours sincerely, 

Thomas Plotts 
Chief Financial Officer (Interim) 
Atrinsic, Inc. 

Thomas Plotts resigned according the company press release dated August 15, 2011.

The share price of ATRN dropped on 18,101,857 shares traded in the last session, more than 3X the last 5-Day Average Volume. The Market Capitalization is now just 700 Thousand for the 6.52 Million Shares Outstanding.

Penny stock traders that were riding the pinksheets listed shares for a ride in recent days will no longer be able to verify whether ATRN is worth 12.25X, $0.1078, what it was in the beginning of 2012; $0.0088.

Atrinsic’s stock price got crushed in October and November of last year. Investor confidence had dwindled with the continuing debt concerns and persistent losses.

With assets that include Kazaa and GatorArcade, ATRN also offers custom-built services for agencies and marketers looking to develop a web/marketing ecosystem which the company generates transactional revenue.

If you really dig down deep into the assets sold and secured debt defaulted on, it is one huge S.N.A.F.U. Yet somehow superficially, Atrinsic has some appeal to it even if it is far from being profitable. With revenues decreasing year after year since the $113 million ATRN booked in 2008, the lull might have actually turned the corner as of the third quarter of 2011.

Bottom Line: The losses ATRN had reported were getting smaller over the past four quarters. Atrinsic generates revenue and its transactional business is profitable but the Kazaa/subscription division is the biggest loser.

The penny stock is a pure speculation play especially under the new news that financial data will no longer be made available. Some think ATRN could be a takeover target since the enterprise and brand name are marketable and could be profitable with the right funding. Regardless, expect to see more downside than upside with this $0.1078 stock.

 


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