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12 Retech Corp (OTCMKTS:RETC) Remains A Top Pick

12 Retech Corp (OTCMKTS:RETC) Remains A Top Pick
Written by
Jarrod Wesson
Published on
July 25, 2017
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One name which many penny stock investors are talking about is 12 Retech Corporation (OTCMKTS:RETC), which is the developer of the patented "12" next-gen retail shopping technology. In only one month, the share price has gone from $1.00 to touch the level of $2.25. For what reasons? The announcement of the acquisition of 12 Hong Kong Limited, the release of a new website, the release of its quarterly report and reduction of the total amount of shares are making the share price jump. In this piece, we will tell you everything that you need to know, but first of all have a look at the recent share price action and note the unprecedented volume. On some days, more than 1 million shares changed hands.SourceBusiness - The merger agreement with 12 Hong Kong LimitedRETC is the business entity created by Devago, Inc., a Nevada corporation, and 12 Hong Kong Limited. According to the most recent quarterly report, both companies entered into a share exchange agreement on June 7, 2017. The market celebrated the deal, so we believe that the readers would be interested in the terms included in the agreement:

"The Company will acquire Four Million (4,000,000) shares of 12RT, representing 100% of the issued and outstanding equity of 12RT, from the 12RT shareholders (the “12RT Shares”) and in exchange the Company shall issue to 12RT an aggregate of Fifty Five Million (55,000,000) shares of Company stock, consisting of: (i) Fifty Million (50,000,000) shares of post forward split Company common stock; and, (ii) Five Million (5,000,000) shares of a to be designated DVGG Series A Preferred Stock." Source

Following the announcement of the agreement, some modifications in the capital structure were approved by shareholders:

  • Increase of the authorized shares of common stock to 500,000,000
  • A 6 for 1 forward stock split
  • Decrease of the authorized shares of preferred stock to 50,000,000

As of June 27, 2017, the companies closed the transaction.

"As of June 27, 2017, the Company and 12 RT, have determined that all conditions necessary to close the Share Exchange Agreement have been satisfied and therefore as of the date hereof, the Share Exchange Agreement was closed and as such 12RT has become a wholly-owned subsidiary of the Company." Source

It can be seen in the stock chart that the share price commenced to creep up right after June 27, 2017. The market celebrated the transaction, as it shows that the company is growing by acquiring new assets and know-how in the online shopping industry.Recent DevelopmentsOn July 6, 2017, the new corporate website was announced. Angelo Ponzetta, CEO of 12 Retech, explained:

"The new 12 Retech website will provide our partners, consumers, shareholders, and the media with the latest, the most detailed, and the most accurate information about the Company, our patented and proprietary retail technology products and services, and will serve as a platform for developing new business around the world." Source

On July 8, 2017, RETC put out an update about the state of its business. It was remarked that the company had been working for the last 36 months in the design, development, and launch of its "new "12" retail platform which fully-integrates all aspects of the traditional retail experience with online shopping, entertainment and social networking." The technology was explained in the following terms:

"The "12" shopping experience offers both retailers and customers an exciting, time-saving and efficient way to enjoy and to become fully immersed within the retail environment. The "12" integrated retail platform incorporates several proprietary technologies including custom hardware ("iMirror"/ADScreen, "iKiosk"), ecommerce software, and apps for smartphones and tablets (both iOS and Android) to create a truly unique shopping and entertainment experience for consumers." Source

Additionally, it was put out that several retailers in Asia, Europe, and North America are working with RETC to launch new platforms. The partnership agreements with these collaborators were expected to be completed within next 4-8 weeks after the announcement. We consider these new deals a catalyst. The stock could jump when the contracts are put out, so be ready to assess new press releases.Finally, on July 13, 2017, something even better was put out. It was released that a vendor shareholder was going to return 3,000,000 shares of common stock to treasury for cancellation. What does it mean? It means that the amount of shares outstanding is reduced. The share price obviously increased. Angelo Ponzetta, CEO of 12 Retech, explained:

"Reducing the total number of common shares outstanding has increased shareholder value and will give us greater flexibility in financing and making potential acquisitions in the future." Source

Following the share cancellation, as of July 12, 2017, there were 75,692,024 common shares issued and outstanding.ConclusionRETC made a large amount of corporate moves in the last two months and the market pushed up the share price. The merger closing on June 27, 2017 seemed to be the most important announcement. However, other news that the company put out were interesting. They all show that the company is growing and boosting shareholder value. The creation of a new website and the reduction of common shares outstanding are very good proofs of it. To sum up, follow this name, as if the good news continue, we don't really see why the share price should stop climbing.We will be updating our subscribers as soon as we know more. For the latest updates on RETC, sign up below!Image courtesy of barnyz via FlickrDisclosure: We have no position in RETC and have not been compensated for this article.

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