BOREAL WATER COLLECT (OTCMKTS:BRWC) Is Up 50% On New Filing

Getting a massive green bump is not the most logical thing that can happen to a company that announced even more recent dilution but that’s exactly what happened to Boreal Water Collection, Inc. (OTCMKTS:BRWC). Yesterday the company pulled ahead 50% on the charts, clambering out of triple-zero land and stopping at $0.0012 per share.

There is no new PR or any other announcements coming from BRWC. There is, however, a brand new filing that went up yesterday, around noon. Almost immediately after the 8-K was made public, BRWC started climbing. The filing announced that the company completed the conversion of its final convertible note. Investors on trade forums and discussion hubs cheered at the announcement but we see little reason for excitement in it.

The 8-K details how BRWC cleared $838 thousand of convertible debt by issuing 2.14 BILLION common shares between early November 2014 and June 19, 2015. A lot of the cleared debt was already embedded in the company’s previously known share structure. As of May 6 this year, BRWC reported 2.02 billion outstanding common shares. This number was already up 120% from the 913 million shares reported on March 10, 2015.

The new 8-K reveals that between May 6 and June 19 this year, BRWC pumped out a total of 1.15 BILLION new common shares, priced between $0.0002 and $0.0004. This means dilution of over 200% within just over three months – no small feat even for a pink sheet stock trading in triple zeroes.

In light of this share structure update and the dilution involved, it’s really difficult to imagine why BRWC spiked as high as it did yesterday and just how long it can hold those new highs.