Clean Coal Technologies Inc (OTCMKTS:CCTC) Breaks Through the $1 Mark
Yesterday the stock of Clean Coal Technologies Inc (OTCMKTS:CCTC) continued its amazing performance by surging another 25% up. Starting from an opening price of a little over 85 cents the ticker found itself at $1.05 by the time of the closing bell. A new 52-week high of $1.07 was registered during the session. The daily volume of close to 1.2 million traded shares is among the biggest seen by the company.
At the start of September CCTC were trading at 25 cents per share while now they are sitting at prices 320% higher. The uptrend has indeed been impressive but what caused investors to suddenly show such a strong support for the stock?
CCTC are developing a technology to convert raw coal into a cleaner burning and more efficient fuel. In its latest PR from September 11 the company announced that its test plant has been successfully transferred to AES (NYSE: AES)’s Shady Point Facility, near Panama Oklahoma. According to the PR the plant should be ready to start testing Powder River Basin Coal in the upcoming weeks. CCTC expects to commercialize its Pristine M technology in October/ November, this year.
This is a major milestone for the company and it is no wonder that investors are jumping in but getting overly excited may not be a good idea. Despite the recent progress CCTC is still surrounded by numerous red flags. Let’s start with the fact that there is no way of knowing what the current financial state of the company really is. As we’ve warned you in our previous articles the OTCMarkets profile page of the company has been branded with the OTC Pink Limited information sign for quite a while.
On April 1 CCTC submitted a notification of late filing for their annual report for the fiscal year ended December 31, 2014. On May 18 another notification of late filing was filed this time for the financial report covering the quarter ended March 31. Four months ago CCTC said that the financials should be coming “shortly” while at the start of September they were even more specific – they were working with their auditors to make the company ” fully current within the next fifteen business days”. Well, those 15 business days are over but there is still no trace of the missing report.
And having access to a more current information should be extremely important for any investors because as of September 30, 2014, CCTC were in a dreadful state with:
• $1,237 cash and total current assets!
• $4,352,182 current liabilities
• ZERO revenues
• $1,011,605 net loss
In addition, at the time there was a substantial amount of outstanding convertible debt, a portion of which could be turned into shares at discounts from 25% to 42%. CCTC has stated on a couple of occasions that the debt has been reduced significantly but it is not clear if any of it has been converted into shares. Even the recent funding deals made by the company could raise some concerns. CCTC sold 3 promissory notes, $500 thousand each, but if the company completes a more comprehensive financing transaction, as defined in the 8-K form, the notes will become convertible into units consisting of 1 common shares and one warrant for the purchase of a common share priced at $0.10.
Even if you don’t’ take into account the possibility of any new shares being issued in 2015, although at the start of the year CCTC increased their authorized shares from 45 million to 150 million, the current market cap of the company of $42.8 million remains completely disconnected from the numbers found in the last financial report. CCTC should be approached with caution. The stock has appreciated significantly and chasing after it now may be a risky choice.
