Minerco Resources Inc. (OTCMKTS:MINE) Reports Quarterly Results And Crashes
With only a few exceptions, the share price of Minerco Resources Inc. (OTCMKTS:MINE) has fluctuated around $0.0175 for about a month now. The ticker remained pretty much stable, in spite of an enduring lack of relevant news to keep stock afloat, followed by the announcement that the company had diluted even more. However, now that MINE‘s 10-Q is out, things are starting to look grim – MINE stock fell 15.66% over the course of a single session, and by the end of the day, it looked like it was just gathering downward momentum.
To elaborate – many MINE enthusiasts were really looking forward to seeing good news in the report that came out yesterday. After all the boastful PR and publicity stunt driven hype, people were eager for some hard evidence of MINE‘s achievements during the most intense days of the marijuana rush. Sadly, the report that came out for the period ended April 30, 2014 gave investors nothing but grief:
- Cash – $291 thousand
- Current Assets – $411 thousand
- Total Current Liabilities – $6.4 MILLION
- Sales – $7 thousand
- Total general and administrative expenses – $164 thousand
- Net Loss – $8.1 MILLION
These figures shocked many investors, and their outrage is obvious after one look at the charts. And why shouldn’t they be disappointed?
Judging mainly by the PR that the company has issued in the last few months, MINE appeared to be going somewhere with its Level 5 projects. Now that some hard evidence of its operating activities has hit the web, it has become painfully obvious that the company has spent the first quarter of 2014 transforming a total of $164 thousand in expenses into $7 thousand worth of revenues.
Even if one is to disregard the staggering number listed under “net loss”, because it “was primarily due to an increase in derivative liability which was caused by increase in price per share of common stock”, the numbers given in the report are still distressing.
True, on May 7 MINE secured some financing through a traditional line of credit for the sum of $2 million. One way to see this is as purchasing breathing room for operations to grow. However, at the end of the day, this just adds another seven digit sum to the staggering amount of debt MINE has already accumulated.
As of the end of April, the company has declared $6.4 million in current liabilities. Even reduced by $1 million, as the company claims to have done recently, that’s still over 5 million dollars dragging MINE down. So what does all of this add up to?
Add the tendency towards toxic funding to MINE‘s mediocre achievements and subtract investor trust in the company from the equation, and it should be quite obvious why the ticker is currently headed down, hard.
Most other pot-stocks had more success than MINE during yesterday’s session. Tranzbyte Corp. (OTCMKTS:ERBB), for instance, managed to rise 15.23% on yet another boastful piece of PR.
