Pumpers Take Pan Global Corp (OTCMKTS:PGLO) for a Ride
According to one of Pan Global Corp (OTCMKTS:PGLO)’s latest 8-K filings, the company officially seized to be a shell just eleven days ago. Yet, if you check out our database, you’ll see that Penny Stocks Forever (PSF) have already sent out three alerts. The emails have been prepared for free, they say that the PR activity around PGLO has been quite intense recently and they say that quite a lot of things are suggesting what they call “a marketing campaign” in the near future. In other words, PSF expect to see the ticker pumped. We decided to see if they are right.
One thing is for sure – there’s no shortage of press releases. Last Friday PGLO announced that they have signed a lease agreement for a parcel in the state of Punjab, India where they plan to build their first hydroponic greenhouse facility. Then, on Saturday, they informed us about their revamped website and yesterday, they updated their shareholders on the developments around the acquisition of the 5.7 MW hydroelectric plant which is 95% finished and should start generating revenues during the fourth quarter of 2013. Apparently, they need to do some more due diligence before they can complete the purchase.
So, PSF were right about the fact that quite a lot of announcements have been made over the last couple of days. We’re not sure that things are quite as exciting as they sound, though. The 8-K covering the letter of intent for the electric plant deal clearly says that the acquisition is not expected to be completed until the second quarter of 2014. It also says that the total purchase price is hovering around $6.9 million – money that PGLO simply don’t have at the moment. In actual fact, according to the latest 10-Q, the company is in a bit of a financial mess. Here’s how things stood as of June 30:
- cash: $9,822
- total assets: $20 thousand
- total liabilities: $374 thousand
- quarterly revenue: $15 thousand
- quarterly net loss: $107 thousand
And since we’re on the subject of the latest 10-Q, we might as well share some other potential red flags. The number of authorized shares was recently increased to 550 million, quite a lot of stock was issued as a conversion of notes at some ridiculous discounts and, as an added bonus, we read in the filings that PGLO‘s former CEO is called Virginia K. Sourlis. Apparently, she was also involved in another penny stock, GreenStone Holdings (OTCMKTS:GSHN) when some intriguing schemes took place. The SEC, apparently weren’t too happy with what was going on and they started a civil action against Ms. Sourlis.
All in all, lots of food for thought and lots of due diligence to be done, but we must say that if PGLO somehow manage to raise money and if everything is going according to plan, we might just see some progress. There is one thing that you should have in mind, though.
Remember when we said that Penny Stocks Forever are expecting a pump in the near future? Well, they’re not quite right. The campaign has already started and it’s carried out by the same people who brought you Amarium Technologies Inc. (OTCMKTS:AMMG) – Stock Tips. The only difference is, this time the budget is quite a bit bigger – $1.1 million.
Once again, a landing page was set up and the highlight is again a special video in which a person by the name of Mike Statler has explained how great an opportunity PGLO presents. Mr. Statler definitely does a fine job at convincing you that what you have on your hands is a company that will soon make you extremely rich. Let’s not forget however, that he was saying much the same things about AMMG and that didn’t really go according to plan. In fact, after a horrific session yesterday, Amarium’s stock is standing around 64% below the hype induced 52-week high of $0.59.
In any case, believing everything you hear or read on the Internet is never a good call. The fact that someone has spent more than $1 million on artificially inflating PGLO‘s price is also a massive cause for concern and warrants extreme caution when deciding where to put your money.
