Nano Labs Corp. (OTC:CTLE) In Anticipation of a Huge Dump

There has been non-stop pumping of Nano Labs Corp. (OTC:CTLE). The shell is turning out to be a profitable company, at least for the insiders.

In the previous 2 trade sessions the stock dropped a bit from its prior upward movement and landed on high volume below the $0.30 mark. On May 6 trade session CTLE‘s stock had an all time high of over 1 million shares traded coming up to a total trade value of $330 thousand.

Today since the market opened the price has been going up and is now at $0.325. We don’t really know how long this upward movement will continue, but further dumping is anticipated. The fact is that absurd amounts of stock are held by insiders and those insiders seem to be making the best out of the pumpers’ promotional emails.

This situation is due to a forward split of 25 for 1 shares which was made in May 2012 leading to insiders having a total of 103 million shares acquired for free that could be traded. Just before the split Bernardo Chavarria and Jose Hernandez received 4 million shares from Sandra Venezia and Mark Rodenbeck at the rate of roughly $0.026 (quite below the market price) totaling $105,768 in cash.

After the split Mr. Chavarria and Mr. Hernandez had 15 million and 85 million shares respectively making the total outstanding share count of 203 million.

CTLE also has a significantly high market cap for a company in their situation. The market cap is $59 million currently. Let’s take a look at their financials and see what you can get for nearly $60 million

total assets: $0
total liabilities: $209 thousand
revenue: $0
net loss: $18 thousand

It is surprising how they are managing to sell something that doesn’t really exist and are doing it pretty well. The recent statements about their nanotechnology coatings look interesting, however, when you start to look in more questions arise.

First, they stated that they have started testing of their nanotechnology coatings with a strange Mexican entity unter the name CIVIK. We didn’t manage to find anything about CIVIK when we searched and we tried with more precise searches adding a few more words like LED Lighting Systems (what CTLE are claiming to be testing the coating on). It wasn’t a surprise that page after page we didn’t see anything else but Honda’s, spare headlights for the same Honda’s and nothing about this entity.

With all these facts and the financial state of CTLE we can say that they are a risky investment, which may turn out to be profitable solely for the insiders. The more you dig the more shady things start to look. Be sure to do your own due diligence before you invest in them.