3D printing is a hot topic with share prices of the major players soaring over the past several years. In a previous article titled “The Dangers of Investing in Over The Counter (OTC) Stocks“, we looked at a number of companies that used the word nanotechnology to promote their value proposition, yet over time lost nearly of all their value. In a similar way, we would expect to see many OTC companies moving into 3D printing as well. One company that recently decided to enter the 3D printing space is Makism 3D.
Incorporated in Nevada, Makism 3D (OTCBB:MDDD) (previously known as Advanced Cellular, Inc) is a shell company that conducted a share exchange transaction with Umicron Ltd., a private limited UK company claiming to be involved in 3D printing but with no website or information available. News of this transaction caused Makism’s shares to spike nearly 400% before quickly retreating to their previous levels. This newly formed entity issued an 8-K recently stating their intent to enter the 3D printing marketplace with a low cost professional-grade 3D printer that will compete with the current major players based on a competitive price point. In regards to intellectual property, the company states “upon receipt of adequate financing, we plan to file patents on our hardware designs and common law trademarks”. The company has a current market cap of $85 million with around $16 thousand dollars in cash.
When looking at the potential of a company, investors expect to see an experienced senior management team that can execute on the company’s vision. Makism currently has three employees; the CEO, the CFO, and the Secretary. 26 year old Luke Ruffell is the CEO and Chairman of the Board of Directors of Makism. Previously Mr. Ruffell was a director of Geoh Networks Ltd. and a director of Taper UK Ltd, neither of which appear in a cursory Google search. 26 year old CFO Mathew Lummis studied Business and Management while attending the University Campus Suffolk and for the past four years worked as the Facilities and Landscape Manager for Forest Camping Ltd., a campsite in the UK. 21 year old secretary Feroz Khan was previously the director of Bespoke 3D Ltd., a prototyping company, since June 29, 2013, and a director of AAKhan & Sons Ltd., a property company, since May 1, 2010.
Investors who are considering Makism as an investment option should ask themselves what they are purchasing when they buy shares of this company. Based on the recent 8-K filing, it appears investors would be buying an ambitious business plan, an inexperienced management team, and around $16 thousand dollars in cash, all of which command a current valuation of around $85 million dollars.