The most probable reason for the gain must be the latest news about E-Debit, which was released last week. According to the announcement, the company has received Canadian Interac Association terminal certification for application of its software and Kernel application. Besides, E-Debit received a Switch certification enabling all Canadian Interac card products with chip embedded security to be utilized in all bank machines processed through E-Debit’ payment processing platform conducted by its subsidiary Westsphere Systems.
Obviously, traders got impressed by this news and started investing in E-Debit. The question is, is that a new bullish trend, or just a temporary climb? It’s about to be seen.[BANNER]
Historically, the company has been in the low-trade zone, though currently the stock price is rising up. However, the most interesting fact about E-Debit is that throughout December the company’s management has been either disposing or buying WSHE shares heavily with no definite reason. Probably, the team has been provoked by the recent ups and downs of the stock due to the company’s positive announcements.
E-Debit Global Corporation provides operational and administrative support. According to its financial report, the company has more liabilities than total assets in its balance, as well as shareholder loans that haven’t been covered. As of end-September, the accumulated deficit of WSHE exceeded $4 million and the company has not enough cash to pay it. As compared to the previous year, the losses have increased.
All the losses and the capital deficit raise substantial doubt about the ability of E-Debit to continue as a going concern. The management team claims it “recognizes that the Company must generate additional resources to enable it to continue operations”. However, even if the company raises additional capital, there can be no assurance that it will achieve profitability, or it “may have to cease operations”.