Shareholders of Root9B Holdings Inc. (NASDAQ:RTNB) in Limbo

Root9B Holdings Inc. (NASDAQ:RTNB)

Shares of Root9B Holdings Inc. (NASDAQ:RTNB) gained 44.2% after the company announced foreclosure auction results. Pursuant to a Security Agreement entered with secured creditors, auction of the company’s assets resulted in $12.5 million – representing the total outstanding principal and unpaid interest owed to secured creditors.

Root9B Holdings Inc. (NASDAQ:RTNB)

T-12 Halt Code

Root9B Holdings Inc. (NASDAQ:RTNB) no longer has any operating assets following the sell-off – the company no longer has the ability to generate revenues.

The company’s Chief Executive Officer, Eric Hipkins, has since resigned from his position with immediate effect. The NASDAQ capital market has also halted raring of the stock under the T-12 halt code. Trading of the stock will remain halted until the company satisfies regulators request.

The halting of the stock follows the rise of the stock to the $2.01 mark. However, the stock continues to trade in a strong downtrend after losing more than 70% in market value since the start of the year.

Root9B Acquisition

Root9B Holdings Inc. (NASDAQ:RTNB) has confirmed that it has agreed to be acquired by an affiliate of Tracker Capital Management.

“Root9B is delighted to announce our new ownership, which provides us the capital required to eliminate debt from our balance sheet and fund our strategic growth initiatives. Our team remains committed to bringing experience, excellent service, and next-generation cyber solutions to our clients,” said Eric Hipkins, Root9B Holdings Inc. (NASDAQ:RTNB) Chief Executive Officer.

Information on the acquisition is still sketchy. However, reports indicate that Root9B will operate as an independent and private company with no affiliation to Root9B Holdings Inc. (NASDAQ:RTNB) which happens to be the parent company.

Root9B Holdings Inc. (NASDAQ:RTNB) would face an uncertain future in the stock market should the NASDAQ allow it to continue operating as a public company. The fact that the company does not have revenue generating avenues following the sale of key assets is another point of concern that could affect investors’ confidence on the stock.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RTNB and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Root9B Holdings Inc (NASDAQ:RTNB) Catches Market by Surprise

Root9B Holdings Inc (NASDAQ:RTNB)

Shares of Root9B Holdings Inc (NASDAQ:RTNB) more than doubled in value after the company announced it had secured incremental funding of $500,000 that will allow it to meet its financial obligations. The rally also came a day after the company confirmed it had received a foreclosure notice from Centriole Reinsurance Company.

Root9B Stock Performance

Tuesday’s 136.51% rally helped reverse, be it in the short term, a strong downtrend trend on the stock. However, the stock of Root9B Holdings Inc (NASDAQ:RTNB) continues to trade near all-time lows in a $1.16-$3.80 trading range. The stock has come under immense selling pressure ever since the company’s financial health was questioned prompting a sell-off from highs of $12 a share last month.

Root9B Holdings Inc. (NASDAQ:RTNB) Holdings is a Cybersecurity company focused on providing advisory services in regulatory risk mitigation, energy, and control solutions. The firm’s cyber solution segment offers cyber security advanced technology training as well as operational and consulting services.

Root9B Holdings Inc (NASDAQ:RTNB)
One month stock price chart for RTNB

Foreclosure Dilemma

Investors have in the recent past started to question Root9B Holdings Inc (NASDAQ:RTNB)’s ability to continue operating as a going concern given the financial woes it is grappling with. The company has received a foreclosure notice because of its secured indebtedness, paving way for secured creditor’s agents to auction the company’s assets. The auction, to take place on August 31, 2017, is expected to raise funds for paying the company’s debts.

In a bid to prevent a mass sell-off of Root9B Holdings Inc (NASDAQ:RTNB) assets, the management team says it is working with senior creditors and other potential investors to raise funds before the auction date.

“While the Company is continuing its efforts to secure additional working capital and obtain waivers from the secured creditors it is unaware of any developments or information that would account for the significant volume of trading in our shares,” said Eric Hipkins, RTNB’s Chief Executive Officer.

New Funding Reprieve

A 136% rally came after reports the company was gaining substantial ground in its push to raise funds to prevent an asset sale. Root9B Holdings Inc. (NASDAQ:RTNB) has already secured $500,000, money it plans to use to meet its payroll obligations in addition to financing other working capital purposes. The company raised the funds by issuing convertible promissory notes along with warrants for the purchase of common stock at par value of $0.001 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RTNB and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.