Genesis Electronics Group Inc (OTCMKTS:GEGI) Excites Investors Despite Stop Sign
Yesterday Genesis Electronics Group Inc (OTCMKTS:GEGI) gapped up at the opening bell, soared to incredible intra-day highs, then cooled off significantly and still ended the session a stunning 200% in the green. The reason for the price spike was a news release dropped by the company around the opening bell yesterday.
GEGI announced it entered an agreement for $2.5 million in new financing, to be obtained from a mysterious, unnamed “private individual”. Naturally, the company secured this financing through a convertible note. The conversion provisions and possible discounts associated with it are not mentioned in the press release. With GEGI being a pink sheet enterprise, there’s not going to be an 8-K detailing the deal.
In fact, there are a great many things that are missing about GEGI. The company is stamped with the red STOP sign on OTC Markets, is labeled as Dark or Defunct / Pink No Information and has not submitted a single report since its quarterly for the three months ended June 2014. In a nutshell, traders have been kept in the dark for about a year now and have no real way to get up-to-date information on the company outside of its own PR.
What ancient information on GEGI is available is far from confidence-inspiring. Here is what GEGI last reported as of June 30, 2014:
- $516 in cash
- $1.4 million in current liabilities
- ZERO in revenues
- $43 thousand in net loss
So, basically GEGI was nearly broke, was not making a dime in revenues and stopped reporting a year ago. The $2.5 million financing and the first $500,000 allegedly already received by the company will go towards GEGI‘s operations in a mining property in Nevada. This would all be very exciting indeed if any of it, including the lease and mining agreement signed by GEGI in March 2015, were described or even mentioned in a formal, official public filing but sadly, this is not the case.
