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Max Sound Corp (OTCMKTS:MAXD) Runs Into Resistance

Max Sound Corp (OTCMKTS:MAXD) Runs Into Resistance
Written by
Alex Carlson
Published on
March 30, 2016
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InsidrFinancial

Max Sound Corp (OTCMKTS:MAXD) has been running into all kinds of resistance. Whether it's on the charts or in the court system, MAXD can't seem to catch a break. However, there is some hope. MAXD has a lot in the pipeline for 2016 and if the company can deliver, it will get its share price going higher pretty quickly. A first step would be closing any one of the deals that the company is currently working on. According to MAXD, the company is working on the following:

1) MAXD is in advanced negotiations with a large entertainment company relating to our significant cost savings from reduced bandwidth with no sacrifice to user experience. 2) A top mobile device manufacturer is integrating MAXD‘s technologies into its products. 3) MAXD is in the late testing phase with a mobile device industry leader and moving towards an international application of our tecchnology. 4) Several notable companies have entered into test agreements with us to install MAXD’s software on their devices in 2016. Details were mapped out at the 2016 CES trade show. 5) MAXD is in discussions with two major computer companies to integrate the MAXD software into several products.

MAXD has created the acclaimed MAX-D HD Audio. Max Sound can provide a better solution for Audio, Video and Data transmissions. Max Sound Corporation is the company that brings forth technologies including VSL’s Optimized Data Transmission Technology. MAXD maintains the same or better quality in audio and video when using higher compression rates, thus allowing for at least 33% savings on data bandwidth usage costs. As of Q3 2015, MAXD can now provide significant cost savings and enriched clarity for video.The biggest problem MAXD has been facing is the endless run around the company is getting in the court system with VSL. It's painfully obvious that VSL is doing everything in its power to delay, stall, and deter MAXD from winning its court case. On March 9th, VSL requested an ex-parte 30-day extension as they claimed that they changed their legal counsel yetagain. VSL's new lawyers made no appearance and their existing counsel did not provide proof of engagement.In January, MAXD went to court again due to VSL's continued violations of the Emergency Arbitration Award, and the Superior Court's Order confirming the Award. At the hearing, the Court asked MAXD to demonstrate what additional damages it has incurred by virtue of VSL's ongoing, allegedly violative, conduct. MAXD, through its counsel, and retained economic experts, are in the process of preparing that information for the Court. CEO John Blasure said:

"After last week's hearing, I believe that the Court once again witnessed VSL's chronic disrespect for the Arbitral and Judicial processes, particularly the Superior Court's Authority. We look forward to providing the requested evidence to the Court substantiating the additional damages VSL has caused to our Shareholders and stock as a result of its ongoing and chronic wrongful conduct."

VSL is doing everything it possibly can to run out the clock against MAXD. This hurts MAXD because its financials are horrible. The company has never produced revenues. MAXD has just $20k in cash, $146k in assets, and $7.5 million in liabilities. Further hurting shareholders is the threat of dilution as $2 million in liabilities are in the form of convertible notes.Currently trading with a market cap of $1.75 million, MAXD is facing major headwinds going forward. The company is banking on the court system to capture a windfall for its shareholders. With the evasion tactics being done by VSL, we are beginning to doubt this will realistically occur. MAXD may go broke before it gets awarded anything. Obviously some shareholders are believing this to be the case as the latest run up the charts saw heavy selling come into the market. Caution is warranted going forward. We will be updating Insider Financial as soon as we know more. For continuing coverage on MAXD, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in MAXD and have not been compensated for this article.

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