SKY440 INC COM USD0.001 (OTCMKTS:SKYF) Gets A Close Look

The share price of SKY440 INC COM USD0.001 (OTCMKTS:SKYF), which develops consumer-ready products including medical marijuana products, rose 250% in just one day. As a result, we became interested in the company, as this share price action cannot be explained by any recent news. The last announcement was made in 2016.In this article, we will assess SKYF's business and the most recent developments to understand what can be going on. Additionally, we will explain how OTC Markets recently reacted to the lack of news from the part of SKYF. Have a look at the recent share price jump before we provide any detail: 1 month chart for SKYFBusiness and Recent DevelopmentsWhat's the business objective of Sky440, Inc.?According to the company materials received by OTC Markets, the company has two divisions: the Products Development Division, and the Marijuana Development Division. SKYF plans to grow through acquisitions and development of consumer-ready products and services. The company is headquartered in Irvine, CA.What type of products is the company planning to develop?The PD Division intends to develop technology-related products. Additionally, it was noted that the company also plans to diversify the business by assisting the MD Division in the branding, marketing, and distribution of MD Division product lines.SKYF seems to be very focused on its business, as the amount of communication efforts is very limited. The announcements made refer to the financial information of the company, the annual report as well as the quarterly earnings reports. We will revisit all these briefly.The most recent annual report is this document, wherein we found a lot of valuable information regarding the company's strategy regarding the marijuana division:

"According to Marijuana Business Daily, one of the fastest growing areas for investment is the ancillary business segment, which consists of firms that do not handle marijuana products, but provide services for those who do. In this sector, the Company plans to focus on acquiring intellectual property, “disruptive technologies,” assets and scalable companies in the cannabis industry." Source: Annual Report

Additionally, the company plans to provide "financing and general advisory services" among other services to licensed cannabis operators such as:

• Financing options that require start-up, operating, or expansion capital
• Capital to potential tenants to refinance current debt
• Sale-and-leaseback financing arrangements with tenant purchase options
• Real Estate consultancy to the marijuana industry

The last news items were released in 2016, but we will assess them any way. It will help understand the stage of the business. In one of them, the company noted a joint venture agreement with Houston, Texas based Advantage Underwriters Services, Inc. and its Grow-Tech LLP division to manufacture and distribute state of the art customized grown containers. According to the press release, the product had domestic and international market potential, mainly in cities where growing of horticultural and agricultural products is complicated. The company did not note whether this business could help marijuana growers, but we found obvious synergies in the two activities.The other news released stated that Anything Technologies Media, Inc. (OTC: EXMT) and Sky440 Inc. signed an agreement under which ATM will distribute state of the art custom grow containers in Northern California. In this article, it was noted that the end user was specifically licensed to grow legalized medical marijuana. Richard Wilson, CEO for ATM, was quoted:

"This licensing deal is the first of many to come as we bring this exceptional product to market. We are excited to have ATM join Sky440 the Grow-Tech family. This product has tremendous domestic and international market potential, especially in urban areas and in those places where weather and other environmental factors make normal growing of horticultural and agricultural products difficult, if not impossible. In addition, the results are a significantly higher yield in a shorter time than all conventional production methods." Source

Most Recent Financial Situation Reported and Shareholder StructureWe were interested in checking the financial situation of the company. We found in the last quarterly report that the most significant financial accounts were the following (as of March 31, 2016):

• Trademarks: $25,000
• Entertainment Properties: $20,000
• Total Assets: $49,369
• Accrued Payroll Liabilities: $718,515

Additionally, we found the following information regarding the amount of shares outstanding. Please note that the limited float may increase the share price volatility, which some people tend to like:

• Market Value (as of September 1, 2017): 1,609,169
• Outstanding Shares (as of July 28, 2016) : 4,022,922,087
• Float (as of July 28, 2016) : 1,050,148,955

Caveat Emptor and ConclusionThe lack of announcements and financial information is not well regarded by OTC Markets. In this case, the OTC Markets placed the Caveat Emptor sign after the share price increased by 250%. The exchange recommends investors "to exercise additional care and perform thorough due diligence before making an investment decision in that security." We believe that the company failed to release sufficient information in this case, but there may be other reasons, such as illegal promotional activities, undisclosed corporate actions among others. We, like the exchange, encourage readers to be very careful until the picture becomes clearer and OTC Markets removes the skull & crossbones.We will be updating our subscribers as soon as we know more. For the latest updates on SKYF, sign up below!Image courtesy of Davis Young via FlickrDisclosure: We have no position in SKYF and have not been compensated for this article.