First Liberty Power Corp (PINK:FLPC) Get Pumped Once More
Not a month has passed since we saw the last strong movement in First Liberty Power Corp (PINK:FLPC)’s stock. It was in the middle of March and it was primarily due to some optimistic press releases as well as a bit of email touting. Now, we see some movement once again and, although it’s not as explosive as last time (they jumped by as much as 134% in a single day after which they crashed hard) they are certainly heading in the same direction.
This time, the paid newsletters are a bit more active with Lions of Wall Street as well as Today’s Pick Is sending out repetitive alerts on FLPC over the last couple of days. This, of course had an effect on the stock, but it would have been all in vain if it wasn’t for the announcements.
Yes, FLPC‘s PR department has sprung back to life and just like they did last month, they have been extremely creative with the news. Last month they talked about how they have allocated hundreds of thousands and even millions of dollars for the exploration of their mines and properties that, they said, are full of rare earth minerals. We had a couple of major problems with FLPC‘s PR campaign.
For one, they were not willing to discuss where they got the millions of dollars from. As we pointed out in our previous articles, the amounts that they talked about were certainly absent from their then-latest financial statement – the one for the quarter that ended on October 31. Now, a month later, they have filed the next 10-Q, it covers the three months before the end of January, but we still can’t see a trace of any additional funding. In fact, when you compare the figures right now to the ones from the previous reports, you will see that, if anything, FLPC are sinking deeper and deeper into a financial hole and they will have some serious trouble getting out. Here are the figures as of January 31:
- cash: $2 thousand
- current assets: $40 thousand
- current liabilities: $1.3 million
- no revenue since inception
- quarterly net loss: $358 thousand
- net loss since inception: $3 million
With those figures in mind, you should read the latest announcements according to which, FLPC have been cleared for take off – they have all the permits and they will be ready to start the mining operations in a matter of days… with $2 thousand in the bank. It sounds a bit far-fetched, doesn’t it.
At the same time we can see that the share issuance has been in full swing and the dilutions is slowly but surely crushing the long-term shareholders’ investments. The 10-Q for the period before October 31 was filed on December 20, 2012 and on that date, the number of outstanding shares was 169 million. The report for the three months that ended on January 31, 2013 was published on March 15 and according to it, the stock capital had increased to 323 million. That’s around 154 million shares issued in no more than 3 months.
Who got the shares? As we mentioned in our previous articles, some quite suspicious entities like Magna Group LLC and John Fife owned quite a lot of stock. The report reveals that during the last month they received some more as a conversion of notes. In addition to this, some other familiar names crop up like the one of Asher Enterprises, a well-known toxic financing provider in Pennyland.
That’s quite a lot of dilution and we’re sure that if it weren’t for emails, FLPC would have been unable to open the front door of their office because it would have been blocked by angry letters from shareholders. Speaking of their office, we should probably note that they are conducting their operations from Suit 300 in an office building located on W. Lake Mead Boulevard in Las Vegas. Although the financial statement doesn’t disclose the square footage of the property, were guessing that it’s quite big because we found that at least four more penny stock companies have located their principal offices in it. Goldrich Mining Co (OTC:GRMC), Willow Creek Enterprises Inc (PINK:WLOC), Titan Oil & Gas Inc (PINK:TNGS) and PHI Group Inc (PINK:PHIL) are the ones that we managed to find.
Just something to keep in mind while making your investment decision on FLPC.
