Lithium Exploration Group Inc. (OTCMKTS:LEXG) Soars Even Nigher
Yesterday saw Lithium Exploration Group Inc. (OTCMKTS:LEXG) rise even higher than before, on an even heavier volume. But is that a shadow looming over this hyped up run?
Well, seeing as how we’re talking about an OTC Markets pinksheets tier company, – of course there is! As we discussed before, LEXG‘s achievements to date are unimpressive to say the least. Its latest financial report showed some pretty mediocre numbers:
- cash – $59 thousand
- current assets – $115 thousand
- current liabilities – $1.2 million
- quarterly revenues – $16 thousand
- quarterly net loss – $1.1 million
This is why many of the company’s supporters were very excited when LEXG announced that “We have been extremely busy completing our annual audit, which should be filed in the next few days”. That happened more than a week ago – and there’s still no financial report in sight.
Suffice it to say that investors really need that report in order to make an accurate assessment of the risks involved in investing in LEXG, And judging by its previous filings, there may be a fair number of those risks.
The fact that LEXG has had to perform a 1 for 20 and a 1 for 200 reverse split in 2015 alone speaks loud enough in and of itself. The fact that last time it reported the company had notes outstanding with conversion provisions as horrible as 30% to 50% does so as well, and should definitely be considered in the context of the previous one.
Add the fact that instead of decreasing the authorized shares in accordance with the split, LEXG actually raised the authorized cap to 10 billion, and perceptive investors should get a pretty good idea of what is going on with the company and why playing it is so dangerous at this point in time.
Long story short – last time we checked, there were a LOT of threats to LEXG investor value. Until its much anticipated and much delayed next financial report hits the web, we won’t know how many of those have actually harmed investors in the last months and how much pain is still left ins store. Investors should take the facts that are known about LEXG into consideration and act according to them.
