Cyberloq Technologies, Inc. (OTCQB:CLOQ), a provider of prepackaged software services, has announced an increase in its authorized shares of common stock from 200 million to 300 million. The company's shareholders approved this amendment, which was recommended by the Board of Directors, on July 31, 2024.
The purpose of the increase is to provide Cyberloq with the flexibility to raise additional capital. The company plans to use the funds to cover ongoing expenses and to invest in the development of its software infrastructure. Specifically, Cyberloq aims to upgrade the source code and infrastructure of its namesake technology.
The additional shares will also enable the company to pursue future private placements or public offerings. Cyberloq has expressed intentions to raise up to $3 million to support its operations and meet financial obligations through the end of 2025.
To formalize the amendment, a Certificate of Amendment has been filed with the Secretary of State of the State of Nevada. This move is part of Cyberloq's strategy to secure the necessary resources for its projected growth and development in the software industry.
InvestingPro Insights
Cyberloq Technologies, Inc.'s decision to increase its authorized shares reflects its strategic efforts to strengthen its financial position and invest in technological advancements. Delving into the company's financial health and market performance provides a nuanced understanding of its current situation. An InvestingPro Tip indicates that analysts are forecasting a sales decline in the current year, which may suggest challenges ahead for revenue growth. Additionally, the company's short-term obligations surpassing its liquid assets could raise concerns about its ability to meet immediate financial commitments.
From a market perspective, Cyberloq's market capitalization stands at a modest $16.19 million, and it operates with a moderate level of debt. Notably, the company has experienced a high return over the last year, with a 93.74% one-year price total return, highlighting its strong market performance in the recent past. The InvestingPro Data shows that despite a staggering 791.8% revenue growth over the last twelve months as of Q1 2024, the company is not profitable over this period, with an operating income margin of -1555.24%. This suggests that while sales are increasing, profitability remains elusive.
Investors considering Cyberloq should be aware that the stock is trading at a high Price / Book multiple of 182.02, which may imply a premium valuation compared to its book value. In line with this, the InvestingPro Fair Value is estimated at $0.07 USD, offering a critical reference point for potential investors. For those interested in further insights, additional InvestingPro Tips can be found on the platform, providing a deeper dive into Cyberloq's financial metrics and market positioning.
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