Minerco Resources Inc. (OTCMKTS:MINE) Jumping Despite News Of Toxic Funding
Minerco Resources Inc. (OTCMKTS:MINE) managed an impressive 8.88% run up yesterday, in spite of the bad news contained in the company’s latest 8-K.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
Right now, MINE enthusiasts are excited to see their favorite company reach the $0.02 mark again, but with these red flags in mind, do investors really have all that much cause for optimism? Furhtermore, even if the company does manage to rise on hype and hope once more, how long will this ascent last?