Calissio Resources Group Inc (OTCMKTS:CRGP) Soars On Share Buy Back News
After incurring sizable losses for two sessions in a row yesterday the stock of Calissio Resources Group Inc (OTCMKTS:CRGP) not only managed to reverse its direction but it skyrocketed up the chart. For the first couple of hours of the trading day things were actually looking rather bad with the stock sinking even lower to $0.0013 per share. Around noon however investors began rushing towards the company and the buying pressure pushed CRGP to a close at $0.0031 for a gain of over 82%. What caused the sudden change in sentiment?
The answer can be found in the PR published by the company yesterday. It announced that 77,250,000 shares are going to be retired after a share buy back. The amount is substantial enough to get investors excited. This is the latest in a series of encouraging official announcements coming from the company. In mid-June the company approved a quarterly cash and share dividend with the first payment slated to take place on or around August 17.
More recently Calissio triggered the payment of $7.36 million in cash after they transferred 100% of their interest in the San Pedro Mine. The total purchase price is $14,600,000 and was was paid by the assumption of debt and in shares of stock of Milagros Del Cobre Mineria S.A. de C.V. in addition to the aforementioned sum in cash.
Even before the recent developments CRGP was still far ahead of the majority of other pennystocks thanks to its impressive balance sheet. The latest quarterly report showed that as of March 31 the company had:
• $6.7 million cash
• $9 million current assets
• $909 thousand current liabilities
• $5 million revenues
• $2.1 million net income
Don’t get too excited though because there are a couple of red flags that must be acknowledged. Back in October the company did a massive 1-for-200 reverse split that left them with around 3 million outstanding shares. As of March 31 CRGP’s outstanding shares had already reached 119 million. By now that amount has undoubtedly grown even bigger – yesterday’s traded volume surpassed 143 million. The share buy back could bring the O/S back down but that doesn’t mean the dilution is coming to an end. After all CRGP did increase their authorized shares from from 300 million to 975 million.
The past history of the company also raises some alarms. In 2013 when CRGP were still trading under their previous name and ticker – Amarium Technologies, Inc (AMMG), they became one of the first picks of the infamous pumper StockTips. The company is still being targeted by paid newsletters occasionally.
The fact that despite its millions of cash and revenues the company appears to have a virtual office as the address of its corporate headquarters doesn’t help its image in the slightest.
Although Calissio have a lot going for them, not to mention their intention to uplist to a national exchange in the next nine months, trading the stock is still risky. Since the reverse split the ticker has lost 99.9% of its value and it so far it has not been able to form a more prolonged recovery.
