PAWS Pet Company Inc (OTCMKTS:PAWS) shares go BANANZA
Pet owners will be saddened for their precious ones by having to look elsewhere for pet services. The PAWS Pet Company, Inc (OTCQB:PAWS) has mobilized itself toward a more lucrative business sphere while most likely leaving the pet industry behind. Little news has been released lately, and patience seems to be running thin.
Investors may have jumped the gun and took action before the deal was finalized or, as we suspect, just a domino effect was in play nudging the stock up 175% in yesterday’s trading. No evidence of breaking news or press releases could lead to the culprit for the price deviation.
In 2010 PAWS entered the pet business, unfortunately they have been stumbling this whole time, never managing to turn a profit. The company may have realized that it is time to abandon ship and set sail toward a new venture.
It’s hard to determine whether PAWS‘s deal with Mesa Pharmacy Inc. is an acquisition or a reverse merger. For the most part Mess will receive 500 thousand series D stocks that are convertible into five hundred million shares of the Company’s common stock. This will most likely make them a majority holder in PAWS stock.
A quick look at the 3rd quarter balance sheet shows us more details.
- Cash 8,000
- Current Liabilities: $ 3,5 million
- Revenue Zero
- Loss from operations – $446,248
It is worth mentioning that on the 10h of February pennystockcrowd was promoting the stock. This could have helped PAWS move up during the day, but it should be noted that the pumpers were just following the early market performance of the stock, and weren’t the original cause of the surge.
PAWS may have found a new ship, but then again, who will be the Captain? Doing your due diligence and carefully considering the risks when investing in a company which may, or may not acquire another company, is absolutely crucial. Even more so when there is so little information about the financial state of the entity to be acquired.
