Clean Coal Technologies Inc. (OTCMKTS:CCTC) Crashes After Conference Call
Clean Coal Technologies Inc. (OTCMKTS:CCTC)’s latest run in the red took the ticker another 13.97% down the charts yesterday.
Evidently, investors were not pleased with what they heard in Monday’s conference call. In spite of the fact that both said call and the filing of an 8-K that announced the company’s $1.5 million funding deal, the ticker slid down the charts. Why?
Well, as is more often than not the case with dubious OTC Markets penny stock companies, it all boils down to the company’s share structure. Since CCTC hasn’t filed financial reports in more than a year, we can’t really know what the current state of its financials really is.
What we do know from the bits and pieces that can be put together is the fact that CCTC‘s older convertible debt had provisions allowing it to be turned into shares at discounts ranging from 25% to 42%.
As it became clear from the 8-K, the company is still dependent on loans to maintain its operations. Investors would do well to note that “it is anticipated that the terms and conditions of the Additional Debt will be substantially similar to the Initial Notes”.
The conditions in question specified that said debt may be turned into units consisting of 1 common shares and a warrant for the purchase of 1 share at an exercise price as low as $0.10!
Investors really need to pay attention to such red flags, as said details can be the harbinger of disaster. The amount of damage toxic funding shenanigans can wreak on both short and long term CCTC investor value should not be underestimated. With this in mind, let the buyer beware.
