Petrosonic Energy, Inc. (PINK:PSON) Will Hurt
Petrosonic Energy, Inc. (PINK:PSON) will hurt those who still haven’t realized what PSON really is. It’s a pump scheme vehicle, and that’s no news, either. Still, there are people who believe it’s the real deal.
It’s been months since the pump started, and PSON still trades significant volumes. Yesterday PSON closed up 2.59% at $0.99 per share on 3.2 million shares. During the session the price went as high as $1.28.
That may have been a reaction to the filing of a 10-KT/A yesterday. PSON previously filed a notification of late filing for its 10-K. The aforementioned filing, however, is not the 10-K for 2012. It’s an amended transitional report for the period Nov. 1, 2011 to Dec. 31, 2011. This could explain the initial excitement and the following retrace.
Even when PSON file their annual report, it won’t change the facts that the company was created following the pattern of many previous insider enrichment schemes.
At this point the people who held about 29 million shares they had acquired at approximately $0.00089 per share, have probably cashed out. The pumps have stopped and PSON is trading on fluff press releases and the blind faith of novice investors.
In January PSON said it had closed a $3.1 million financing. The money came from investors who got 12.6 million shares at $0.25 per share. The company registered these shares in February, so even those investors had the chance to cash in a hefty 100% profit.
The more reality-oriented pump players also had plenty of opportunities to cash in. Those who believe in the long-term success of PSON on the other hand, may not be so lucky. Back in January when the company announced the financing, Art Agolli, CEO of PSON said the company believed “it should begin generating revenue … in the current quarter.”
A week ago, the quarter in question had already ended, Mr. Agolli said that some agreement with an unnamed Albanian energy company brought PSON “a step closer to achieving revenues from operations.” One could get the impression that the company didn’t generate any revenue in Q1. The report for that quarter should be filed sometime around May 15, but we won’t hold our breaths.
