Alliance Bioenergy Plus, Inc. (OTCMKTS:ALLM) Keeps Marching Down

So far the month of May is proving to be quite a roller coaster for the stock of Alliance Bioenergy Plus, Inc. (OTCMKTS:ALLM). The company’s share price had an amazing hike from around $0.30 to a dollar per share. However, that mad bull rush has now run into a wall. Yesterday ALLM closed red for the fourth time in a row, stopping at $0.62 per share on its heaviest volume for the month.

ALLM used to trade as Alliance Media Group Holdings Inc. until the end of 2014. Seeing how this business plan did not bring a single dime of revenues in both 2013 and 2014, it’s understandable that the company switched names and decided to focus on becoming a green renewable energy business.

ALLM published its latest quarterly report on May 15. The brief summary of the balance sheet is as follows:

• $180 thousand in cash
• $2.5 million in current liabilities
• ZERO in quarterly revenues
• $358 thousand in quarterly net loss

Those financials are hardly the stuff of legend but they obviously did not dampen the enthusiasm of buyers in mid-May, as ALLM ran up for another couple of sessions after putting up the filing. It also worth pointing out that ALLM signed two convertibles in the first three months of 2015 for a total of $143,000 that convert at a 39% discount of the average of 3 lowest trading prices 10 days prior to conversion.

The ‘related transactions’ chapter of the report also offers some interesting reading, such as the private involvement of director Mark Koch and CEO Daniel de Liege in AMG Energy Solutions – the entity which owns 43% of ALLM‘s 51%-owned affiliate AMG Energy Group LLC.

Whether ALLM has run out of fuel and will need new PR to reverse up the chart remains to be seen.