FlikDate Announces “Explosive Growth,” Stock Drops 48%

mbloom

Los Angeles-based FlikMedia, publisher of FlikDate and investee of Hawaii’s mbloom venture capital fund, had a couple of recent announcements to tout the company’s “explosive growth.”

In January, the company announced that FlikDate mobile’s “user base has been growing at a month-over-month rate of 28%.” In addition, the company listed 2014 milestones, including a media partnership with LA-based KROQ and AMP radio stations, as well as the hiring of Olivier Chaine as Chief Marketing Officer and David R. Wells as Chief Financial Officer. The company also expects to expand rapidly in 2015, with partnerships, advertising, and new features being mentioned as the drivers of their expected growth.

In early February, the company announced that FlikDate had tripled new subscribers in January alone.

“More than tripling new subscribers means we are clearly addressing a market need by providing a better way for people to meet and get to know others online,” said Nick Bicanic, CEO, in the announcement. “Based on this explosive growth, we anticipate that as awareness expands, 2015 will bring unprecedented active membership.”

Added Olivier Chaine, CMO, “Our expansion plans for 2015 with Facebook and Twitter initiatives, and international partnerships will exponentially reach even more subscribers worldwide. In addition to these efforts, our active membership base is expected to grow as well with exciting new features to enrich customer experience.”

With all of this good news, however, FlikMedia’s seldom-traded stock dropped 48% in value on February 9th, from $1.95 to $1.01. Only 500 shares traded hands that day. An additional 200 shares traded hands at the same price the following day. Those were two of only three FlikMedia stock transactions since November 2014.

Of note is the hiring of new CFO, David Wells. In a regulatory filing, his compensation was stated to be 450,000 shares, with an additional 100,000 issued per quarter through the end of 2016. At today’s share price of $1.01, that values his total two-year compensation at over $1.25 million. Not bad for a company with their financials