Minerco Resources, Inc. (OTCMKTS:MINE) Jumps Right Back Up
Minerco Resources, Inc. (OTCMKTS:MINE) managed to do a complete reversal during yesterdays session. Opening at $0.21 and closing at $0.27 the performance was the exact opposite of what happened the previous day. Interest in the stock was even bigger culminating in a little less than 120 million shares.
With the start of the year MINE seems to have focused entirely on the operations of their subsidiary Level 5 Beverage Company, Inc. by putting on hold the hydro-electric project in Honduras. They even executed two return of assets agreements where MINE gave 100% ownership of the energy projects back to the originating companies in exchange of a 6% royalty.
Now the company is trying to make it big using their all-natural, reduced calorie “shots”. They have an agreement with Power Brands Consulting, LLC. and recently announced exclusive territory distribution with Avanzar Sales and Distribution, LLC. It all sounds promising but take a look at MINE‘s financials and things become a lot more grim. For the quarter ending April 30 they disclosed having:
- $919 cash
- $26 thousand total assets
- $1.7 million total liabilities
- $ZERO revenues
- $194 thousand net loss
As surprising as it may sound these numbers actually show a vast improvement over the ones from the same period last year when they had a net loss of $1.7 million. The major issue now is the mass issuance of common shares that has been keeping them in business.
In February, 2012 they underwent a 150-for-1 reverse stock split that brought their 1 billion outstanding shares to just 7 million. Now a year and a half later the number is once again closing in on a billion. It seems MINE are expecting even further dilution and on May 15, this year, they doubled the authorized amount which is now 2.5 billion. And according to their own words $3.6 million would be needed for the next 24 months of operations.
Not to mention the plethora of convertible notes, some dating from 2011, that still haven’t been paid off. Maybe that is why investors got so excited when yesterday MINE came out with the news that a note to Asher Enterprises, Inc. from February amounting to $75 thousand has been prepaid in full using cash on hand.
With all the risks associated with the company investing in them requires a lot of careful consideration. Doing your own due diligence now can save you a lot of headaches down the road.
The surprisingly tenacious Awesome Penny Stocks pump for Xumanii, Inc. (OTCMKTS:XUII) still has some strength left closing 5% up yesterday. Among the biggest gainers was Grillit, Inc. (OTCMKTS:GRLT) who rose by 79%, broke through the $1 mark and closed at $1.30
