Clean Coal Technologies Inc (OTCMKTS:CCTC) Pushes Up
Clean Coal Technologies Inc (OTCMKTS:CCTC)’s performance last year wasn’t what you’d call perfect. The stock went through a 1 for 35 reverse split in April 2014 and a couple of months later, it hit a 52-week high of $0.55 per share. Then, however, it screeched to a halt and started losing ground, eventually finding bottom at less than $0.04 in October. Over the next few months, it did manage to regain some of its lost positions, but the volumes were pretty small and the stock didn’t seem too keen on the idea of going above $0.10 once again.
A lot of shareholders were bitterly disappointed by CCTC‘s behavior and you’re probably wondering what the reasons for the appalling drop are.
For one, you have to consider the fact that the company has been around for a while. The people behind it seem to have a really interesting piece of technology on their hands and they have had a lot of time to perfect and commercialize it. Unfortunately, they have had a lot of difficulties in getting it off the ground which means that over the years, they have failed to generate any sort of significant revenues.
And while the stock was hurtling towards the ground, the management team were keeping it really quiet. Press releases were few and far in between which means that there wasn’t a whole lot to entice investors into putting their money on the line. The 10-Q for the third quarter of last year wasn’t much help on that front. The figures in it look like this:
- current assets: $1,237 in cash
- current liabilities: $4,352,182
- NO quarterly revenues
- quarterly net loss: $1,011,605
All in all, there were plenty of things to keep investors away a couple of months ago. Now, though, they seem to have miraculously disappeared. At least that’s what the more recent stock performance would suggest.
Out of the last ten sessions, only one ended in the red for CCTC. The ticker managed to run from just $0.13 all the way to yesterday’s close of $0.34 and the growing volumes show that people are once again very much interested in the clean coal processing technology.
They are excited because on May 13, the company announced that it’s slowly starting to get back to its feet. Some financing has been secured which means that fabrication on CCTC‘s new test facility in Oklahoma should be completed within the next two and a half months. On Wednesday, the management team also organized a webcast and assured their shareholders that things are coming along nicely.
Apparently, people liked what they heard. There is one major problem, though, and some of you might not be paying attention to it. The Limited Information sign adorning CCTC‘s profile at the OTC Markets should provide a hint.
After filing its Q3 report rather late, the company failed to publish the 2014 annual statement and the one for the first quarter of this year. In Wednesday’s webcast, the management team said that the two reports should be out “shortly” and we hope that they’re right because without the statements, we’re left with a few very important, but unanswered questions. Like, for example the question of how much dilution CCTC has gone through.
The company had quite a lot of convertible debt on its books at the end of Q3 of 2014. Some of it can be turned into stock at fixed prices but a portion is convertible at discounts ranging from 25% to 42%. As a result, during the third quarter of last year, some note holders turned $462,696 worth of debt into 5,629,839 shares, bringing the average conversion rate down to just over $0.08 per share. We probably don’t need to tell you how ugly things could turn if these shares hit the open market.
Thanks to the missing reports, we don’t know if the note holders have received some more CCTC common stock. We do know, however, that the company recently increased the number of authorized shares from 45 million to 150 million.
