Minerco Resources Inc. (OTCMKTS:MINE) Jumping Despite News Of Toxic Funding
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MINE had something of a mystery run on May 23 – company stock prices rose 32.87% for no discernible reason, then dropped as quickly and violently – again, without obvious cause. Yesterday the ticker experienced another mysterious burst of volatility which took it a bit closer to the $0.02 mark, despite the publishing of yet another filing related to toxic debt.
Said 8-K declared that, On May 22, 2014, MINE has issued another 105 million shares of common stock to clear a $250 thousand debt dated November 19, 2013. Horrible conversion rates, to be sure, but that’s not the most disturbing part of it. What’s even more alarming is the fact that this is not an isolated occurrence. A quick glance at the company’s earlier filings determines that it has issued more than A BILLION shares of common stock since September 2013, almost all with similar discount.
Moreover, MINE currently has 2.1 billion shares outstanding out of 2.5 authorized, so there is still room for toxic dilution, and it’s not like the financials it published last time it reported are good enough to compensate for its terrible share structure:
- cash – $24 thousand
- current assets – $40 thousand
- current liabilities – $2.8 million
- quarterly revenue – $5,147 (NUMBER NOT IN THOUSANDS)
- quarterly operating expenses – $469 thousand
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