Golden Grail Technology Corp. (OTCMKTS:GOGY) Crashes Right Back Down

Golden Grail Technology Corp. (OTCMKTS:GOGY) managed to gains some ground on Tuesday, but, alas, its ascent was not to last.

Frankly, this turn of events should not have come as a surprise to anyone. There was simply no way for the ticker to remain stable after climbing on meaningless boasts aided by the efforts of a pumper. Those are just not factors you can rely on to keep a ticker afloat.

Then again, some research on GOGY reveals that it has very few other things that could actually keep it afloat. For one, its commercial achievements to date are nearly non-existent:

• Cash – $29 thousand
• Total current assets – $35 thousand
• Total current liabilities – $1.3 million
• Sales – $56 thousand
• Net loss – $1.1 million

The fact that it has next to nothing but debt to its name is not even the company’s biggest shortcoming should have been enough of a hint for most investors about what was to come next.

Another sure-tell sign that GOGY‘s ascent was unlikely to last was the fact that the company’s latest financial report stated that it had $345 thousand worth of convertible notes. Most of the above mentioned debt converts at a fixed price equal to 40% of the lowest closing bid price ten to twenty days before the date of conversion.

Now, we can’t be sure that it was the dumping of this potential stock that was the reason behind yesterday’s crash – however, the possibility that this is in fact the case seems very real at the moment.

Have we witnessed a textbook example of an OTC Pump & dump scheme here? Only time will tell – and in the mean time, investors would do well to keep their eyes peeled when dealing with GOGY stock.