Writing about ongoing paid promotions will be one of my new focuses with my Substack Newsletter. Paid stock promotions have been an area of interest of mine going back a number of years and I am excited to write about them in near real time. Lets start with one that was ran this week.
On September 14, 2021 I received two emails for a paid promotion on Biotricity $BCTY at approximately 9:35AM EST by Broad Street Alerts (Small Cap Specialists LLC) and Traders News Source (TNS LLC), which appear to be two companies registered to the same person:
In the disclosure at the bottom of the promotion, it discloses that the owners of the website promotion were compensated by a bank wire in the amount of $21,500 in cash. It does not disclose who the party is who made the payment.
$BTCY recently conducted a $15M capital raise with H.C. Wainwright being the sole bookrunner, selling 5M shares at $3.00 per share and uplisted from the OTC onto the Nasdaq. The underwriters had a 750,000 share over-allotment. The financials before they raised the fresh $15M were not very good.
The company has convertible debt, options, and warrants outstanding. The paid promotions are usually used to build awareness, generate volume/price in front of a capital raise, or generate volume/price in front of warrant exercise or convertible debt dilution. I usually have a pretty good idea why a paid email promotion is being ran, but with Biotricity it could be sponsored by a number of different parties who would capitalize on the increased share volume and price.
The promotion seems to have worked for now as price and volume have increased substantially over the last three days. $3.19 at the time of the promo to a September 16, 2021 close of $3.45 after touching $3.65 at the high of the day.
$BTCY is now on my watchlist and I will be following the news flow and SEC filings. I plan to write additional updates in the future.
Disclosure: I have no position in Biotricity $BTCY long or short and was not paid to write this article by anyone. I never heard of it until the promotion emails landed in my inbox.