Quasar Aerospace Industries, Inc. (OTCMKTS:QASP) Jumps After Store Acquisition
[[tagnumber 0]]A few months ago Quasar Aerospace Industries, Inc (OTCMKTS:QASP) was just one of the countless pennystocks that decided to jump on the medical marijuana bandwagon. The decision started paying off almost immediately as the stock price of the company managed to escape the triple–zero lands and soared to a high of $0.0038 at the start of April. Hype alone though couldn‘t sustain such price levels and since then [[tagnumber 1]]QASP[[tagnumber 2]] has wiped close to 50% of its price on diminishing volumes. [[tagnumber 3]][[tagnumber 4]]Yesterday though investors once again rushed in to the stock and the increased attention resulted in a 13% jump and a close at $0.0019. Around 243 million shares changed hands during the trading hours which is nearly 8 times higher than the volume registered on Friday. The reason for all the commotion was the PR article released by [[tagnumber 1]]QASP [[tagnumber 2]]early in the morning.[[tagnumber 7]] [[tagnumber 3]][[tagnumber 4]][[tagnumber 7]] [[tagnumber 3]]In it the company announced that they have acquired 100% of the hydroponic store Hydro–Grow Supply Inc. located in Colorado Springs, Colorado. This deal puts [[tagnumber 1]]QASP [[tagnumber 2]]ahead of the majority of pennystocks who joined the marijuana industry only in words without having any operations in the sector. Still investors should use caution when dealing with the company. [[tagnumber 7]] [[tagnumber 3]][[tagnumber 4]]For now no details about the acquisition have been revealed and we don‘t know how profitable the store really is. On its own [[tagnumber 1]]QASP [[tagnumber 2]]is in a really depressing state. According to the latest quarterly report at the end of March they had:[[tagnumber 7]] [[tagnumber 3]] [[tagnumber 21]] [[tagnumber 22]]$22 thousand cash[[tagnumber 23]] [[tagnumber 22]]$108 thousand total current assets[[tagnumber 23]] [[tagnumber 22]]$214 thousand total current liabilities[[tagnumber 23]] [[tagnumber 22]]$28 thousand revenues[[tagnumber 23]] [[tagnumber 22]]$67 thousand net loss[[tagnumber 23]] [[tagnumber 32]] [[tagnumber 7]] [[tagnumber 3]]The accumulated deficit has surpassed $4.3 million but even more distressing is the amount of dilution that has been taking place. For the whole of 2013 around 762 million shares saw the light of day with 515 million of them issued as conversion of debt. For just the first three months of 2014 though [[tagnumber 1]]QASP [[tagnumber 2]]issued 883 million shares due to debt conversion and 227 million were sold for capital. Although the conversion rates were not disclosed in the report the amount of fresh shares is still enough cause serious concerns. Currently [[tagnumber 1]]QASP [[tagnumber 2]]have 1.9 billion outstanding shares out of the 2.5 billion authorized.[[tagnumber 7]] [[tagnumber 3]][[tagnumber 4]]The limited financials of the company and the increasing number of the outstanding shares have caused some investors to wonder how [[tagnumber 1]]QASP [[tagnumber 2]]were able to successfully complete the announced acquisition. In yesterday‘s PR the management stated that more information will be revealed in the upcoming press release so for now we can only wait. Until then the stock is more than likely going to remain volatile. Do your own due diligence and weigh the risks around the company before committing to any trades. [[tagnumber 7]] [[tagnumber 3]][[tagnumber 46]][[tagnumber 4]]Yesterday was a horrendous day for the stock of Affymax, Inc. (OTCMKTS:AFFY). It was devastated after investors succumbed to panic selling resulting in a massive crash of 54% and a close at $0.19. The reason for it was an 8–K form filed on Friday in which AFFY revealed that their partnership with Takeda Pharmaceutical Company will be terminated as of September, 2014. The stock of Integrated Cannabis Solutions, Inc. (OTCMKTS:<a href=“http://www.thehotpennystocks.com/Stock–Quotes/?stock=IGPK“>IGPK</a>) also crashed despite the slew of email alerts touting the company. At the time of the closing bell it was sitting 13% in the red at $0.105. [[tagnumber 7]]
