Galtech Semiconductor Materials (OTC: GTSM) spiked today after a PRNewsWire.com press release stated that the company had received a $5.7 million contract. At precisely 2:11pm ET, Galtech announced that it had “received an advanced architectural, advanced technology, contract from a private firm” [sic]. Shares of the firm had been trading near their historical price levels of $0.025, but after the press release, shares spiked to an intraday high of $0.0495 as the market capitalization of the company temporarily doubled.
Nevertheless, shares quickly retraced their gains, as traders began questioning the integrity of the press release. First, the contract failed to mention the name of the client, which put the legitimacy of the contract into question. Second, the press release contained several grammatical mistakes. Finally, the press release concluded with an uncharacteristically nebulous statement for a regulated company:
Galtech is also in preliminary negotiations with several successful and profitable privately held companies regarding acquisition as part of Galtech’s business strategy.
After hitting an intraday high at 2:19pm, Galtech shares pulled back to a low of $0.035 and were last trading at $0.04.
The press release lists William Tunnell (623-825-2550) as a corporate contact. Voicemails and emails left with Tunnell and other investor relations contacts at Galtech have received no reply as of this article’s publication.
Prior to today’s press release, Galtech had announced a reverse merger and stock split with ANTs Software (PINK: ANTS). As of September 6, 2012, “The reverse merger and stock split is expected to be concluded within the next few weeks following accounting consolidation and appropriate SEC filings.” No further update from the company is available regarding the status of this merger.
ANTs Software is currently profiled on several small-cap websites as a part of a large investor relations campaign. The following websites have profiled the company:
- Orbit Stocks
- Penny Stock Rumble
- Blue Horseshoe Stocks
- Titan Stock Alerts
- Penny Mafia
Needless to say, investors have many questions as to the legitimacy of today’s $5.7 million contract. Should the contract be real, nonetheless, it would dwarf Galtech’s $1.6 million total market capitalization. Investors anxiously await specific details of the contract, the client’s name, and the status of the merger with ANTs Software.
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