Limitless Venture Group Inc. (OTCMKTS:LVGI) Shoots Upwards

The overwhelmingly positive reaction of the market was caused by LVGI‘s decision to open a question and answer forum on their website where shareholders can directly ask the CEO anything they want. Such a move is rather unique for a pennystock company and the increased level of transparency definitely boosted the confidence in the stock. 

Despite the performance of the stock some of the first answers were not exactly encouraging. Apparently the bottling company responsible for the first production run of the SLAM alcohol shots cannot guarantee that the deadline of July 4 will be met. LVGI‘s other line of products – the hemp-based formulas called Hemp Core Health are supposed to start distribution in about a month but currently there are no distribution agreements for it. 

 
We also got more up-to-date information about the share structure of the company – as of May 29 there were 2.3 billion outstanding shares out of the 2.5 billion authorized. The CEO said that at moment there are no plans for a reverse split or an increase of the authorized amount but that may soon change.

LVGI is far from being in the best financial state and according to the quarterly report filed a little more than a week ago the company has: 

• $4125 cash
• $9000 total current assets
• $1.8 million total current liabilities
• ZERO revenues
• $14 thousand net loss

The poor financials are accompanied by a truly massive dilution. Back in January, 2013 the company did a 1-for-1000 reverse split leaving them with 26 million outstanding shares at the end of June, 2013. Nine months later at the end of March that number had turned into 1.9 BILLION with all of the newly issued shares coming into existence as a conversion of debt. And now less than two months later another 400 million shares have been issued. LVGI still has around $900 thousand in notes payable. 

Even if you believe in the potential of the company it is imperative to do your own due diligence before committing to any trades with their stock. The limited financials and the alarming dilution require the use of caution and careful planning in order to avoid any unnecessary losses. 

Yesterday the stock of Alternative Energy Partners Inc (OTCBB:AEGY) also made an impressive movement after it surged by 30% and returned to $0.0034 per share. On the other hand one of the most heavily traded marijuana pennystocks at the moment – Creative Edge Nutrition Inc. (OTCMKTS:FITX) slid down by close to 10% and dropped to $0.068.