Elray Resources, Inc. (OTCMKTS:ELRA) Slips Deeper in Triple-Zero Land
On Friday Elray Resources, Inc. (OTCMKTS:ELRA) dropped again, closing 11% down, at $0.0008 per share. Share volume picked up dramatically once more, at 439 million shares changing hands.
The online casino business still operates out of its virtual office space on 3651 Lindell Road in Las Vegas – the same virtual office used by a number of other OTC companies. Elray’s dip might be an extension of the previous trading session which sent the price in triple-zero territory once again.
ELRA posted its latest quarterly report on Nov 18 and the filing was quite a read. The company’s balance sheet still looks underwhelming:
- $82 thousand in cash
- $10 million in current liabilities
- $67 thousand in quarterly revenues
- $3.2 million in quarterly net loss
What is striking in the report is the company’s outstanding share number. The previous 10-Q had the number at 138 million shares as of August 2014. In just three short months this number has gone up to 1.33 billion in the new quarterly. The share printing press has been in full swing over the quarter, with 821 million common shares issued in October and November alone, for the conversion of ‘various convertible notes’. The average price those shares were issued at is $0.0006 per share. ELRA decided to recap the monstrous dilution over the quarter with a PR stating that company debt has been ‘significantly reduced’.
There are no signs the dilution is coming to an end anytime soon. On Nov 12, less than two weeks ago, ELRA approved the increase of the company’s authorized shares to 5.29 billion so now the sky is the limit.
