Life Clips Inc. (OTCBB:LCLP)’s Resurgence Didn’t Last
tags: LCLP
Life Clips Inc. (OTCBB:LCLP) had an impressive run on June 30, when a $150 thousand paid pump by Tech Stock Insider touted its stock as the best thing since sliced bread, but naturally its climb didn’t last.
The ticker crashed 11.29% before the long weekend, which is a little bit disappointing, truth be told. After all, this was one of the highest profile pumps the OTC Markets had seen in a while. It almost seems like Tech Stock Insider didn’t give it their all.
Then again, one can’t really blame a pumper for failing to lift a ticker up for long, when the company on the receiving end has millions of dollars worth of debt whose “conversion price is the amount equal to 50% of the lowest intraday trading price during the 20-day period prior the conversion date. The number of shares into which the debt under each note is convertible is determined by dividing the amount of the debt being converted by the purchase price.”
So far, this whole ordeal seems like a classic, if slightly overpriced, example of an OTC Markets paid pump. A bit of due diligence does nothing to dispel that impression, with LCLP‘s latest financial report doing nothing to differentiate it from all the other mediocre companies out there:
- Cash – $18 thousand
- Total other current assets – $48 thousand
- Total Current Liabilities – $65 thousand
- Revenues for the nine months ended March 2016 – $0.5 thousand
- Net cash used in operating activities for the nine months ended March 2016 – $420 thousand
With this in mind, it is really no wonder that LCLP is currently falling hard – it is just your average ordinary OTC Markets unimpressive penny stock, burdened with horrible toxic debt. It was pushed up by an ambitious paid pump – and a horrendous crash seems like the only possible outcome of such a situation.
Investors should take not of all these facts and act accordingly.
