GNCC Capital f/k/a Global National Communications Corp. (OTCMKTS:GNCP) Hyped Up Once Again
After failing to make a significant impact on the performance of GNCC Capital f/k/a Global National Communications Corp. (OTCMKTS:GNCP)’s stock with the promotional campaigns back at the end of February and at the beginning of May, the pumpers have now decided to give it another go. This time Stock Mister is leading the pack, but do they really have anything to be optimistic about?
Well, it would appear so. If you have a quick look at our previous article on GNCP, you will see that we had a two major issues with them. The first one was the lack of operations and it is directly connected to the second one – the lack of money. It would seem that GNCP read our article, took notes and set off to solve both of them.
In a flurry of press releases and filings GNCP announced some major news during the last couple of weeks. First, on May 2 they updated their shareholders on the proceedings related to the acquisition that they announced a couple of months ago while the previous pump campaign was still on. Then, they said that they have secured funding for their day-to-day operations and the PR frenzy culminated yesterday when they said that they have reached an agreement for the aforementioned acquisition which basically means that it’s only a matter of time.
So, GNCP‘s portfolio is bigger, the money is secured and all they need to do now is start drilling while we all sit back and enjoy the soaring prices, right? Let’s not get too excited.
If you recall, we mentioned in our previous article that the liabilities found in GNCP‘s financial statement are absolutely humongous. Yesterday, they issued a new report, it’s for the quarter that ended on March 31, it’s absolutely huge (nearly 700 pages) and it doesn’t contain the funding that they secured according to the press release. That’s not really a bother, though, since GNCP have filed an additional document labeled “supplemental information” in which we read that the money will be transferred when the acquisition is completed (hopefully, June 17). The rest of the figures, however, are pretty disconcerting. Here’s a quick summary:
- total assets: $475 thousand
- total liabilities: $20 million
- no revenue since inception
- quarterly net loss: $561 thousand
Quite a contrast from compared to the optimism of the press releases. There are some other things to worry about as well. We mentioned in our previous article that GNCP already had some mining claims in Arizona and we pointed out that they acquired them back in 2010. Almost three years later, we have yet to see a single ounce of gold being dug out of the mines. With that in mind, where’s the guarantee that this time, with the new White Hills property (which will cost GNCP a total of $6 million), things will be different? And don’t they have enough liabilities to take care of right now?
If we have to be honest, we can’t imagine that the expertise and experience of GNCP‘s management team will help them out of the mess. Take Mr. Ronald Lowenthal (Executive Chairman), for example. We did a quick research on him and we found that he has been involved in numerous companies including Aspa Gold Corp (OTCMKTS:RENS) and North American Gold & Minerals Fund (OTCMKTS:NMGL) (two Pink No Information mining ventures), Hunt Gold Corp (OTCMKTS:HGLC) (a mining company with a Buyer Beware stamp on their OTC Markets page) and Premier Development & Investment, Inc. (OTCMKTS:PDIV) (another mining venture in which he partners with Mr. J. Scott Sitra, who was once charged by the SEC for fraudulent activities).
They’re all pretty much failed mineral exploration companies with no operations, no revenues and we reckon that before going anywhere near Stock Mister’s newest pick, you have to ask yourself: “Will GNCP be any different?”.
