BioSolar Inc (OTCMKTS:BSRC)’s Electrifying Run Continues
Last week, BioSolar Inc (OTCMKTS:BSRC) came up with a press release and said that they, along with their clever new invention, are about to change the lithium-ion battery industry. We don’t know about the lithium-ion battery industry, but they’ve certainly changed the way the company stock behaves.
BSRC was transformed from an illiquid, sub-ten-cents ticker that nobody could care less about to one of the hottest stocks on the OTC Markets in a matter of mere hours. And it wasn’t a one-day-wonder, either. Apart from a small slip on Monday, the ticker has been consistently logging double-digit gains which means that, after a 38% jump, it finished yesterday’s session at $0.35 per share.
Of course, the management team should be thanked for that as well. On Tuesday, they said that they want to protect their super lithium-ion battery with a patent and thanks to this, some investors are now more excited than ever. People around the message boards are now dreaming of a $1 billion valuation and are imagining a bidding war between Google, Tesla, and Samsung for BSRC‘s buyout.
Imagination and dreams, however, won’t get the company far. Some actual results are needed and that’s where BSRC seems to be lagging behind. The company has been around for a while and plenty of business ideas and strategies have gone in and out of its headquarters. Sadly, none of them really worked and at the end of March, the company was left with the following financials:
- cash: $173,538
- current assets: $239,363
- current liabilities: $3,683,015
- NO revenues
- quarterly operating loss: $155,144
Coming up with a clever new invention that is supposed to change the way we store and use electricity is all well and good, but you have to be able to fund its development and by the looks of things, this might be a tall order for BSRC. Of course, the management team can always turn to the toxic financing providers (as they have done in the past), but, as we’ve mentioned numerous times on these pages, this could pose a threat to retails investors and shareholders like you.
The company still has plenty of convertible debt on its books and all of it can be turned into stock at some hefty discounts. How hefty?
During Q1, when people like you were paying between $0.07 and $0.17 per share on the open market, some note holders received more than 300 thousand shares at just $0.036 apiece as a conversion of debt. In April, when the ticker was still fluctuating between $0.06 and $0.12, a further 595 thousand shares saw the light of day at a rate of about $0.02 per share.
As you can see, the people who received these shares (as well as others who may or may not have converted their notes over the last two and a half months) are now presented with a brilliant profit opportunity. Unfortunately, if they decide to take it, you and your investment might suffer which means that considering all the potential risks is probably your best bet.
About twenty minutes after the opening bell, BSRC is sitting at $0.345 (1.4% in the red).
