Quasar Aerospaces (OTCMKTS:QASP) Proves Hesitant Under Pressure
After nearly five months of silence, Quasar Aerospaces (OTCMKTS:QASP) decided that it’s finally time to fire up their PR machine and on March 24 they announced that they will be checking out the opportunities presented by the booming marijuana industry.
Three days later, they came on the news again and said that the company CEO, Donnell Vigil, is about to make a trip to Colorado and discuss possible partnerships with some pot-related companies. On April 1, QASP announced that Mrs. Vigil has scheduled several meetings with entities dealing in the marijuana market and said (once again) that the outlook for a profitable business in this particular industry looks bright.
On Friday, they issued their latest corporate update and said that the meetings have been “extremely successful“. Apparently, some entities have agreed to partner with QASP and negotiations are currently taking place. Mrs. Vigil preferred not to disclose the names of the future partners, but she promised to do so when a letter of intent has been signed and executed. The press release also said that she’ll be attending the NoCo Hemp Expo where, hopefully, she’ll be able to arrange a few more meetings and maybe establish some more connections in the MJ business.
Clearly, there’s no shortage of optimism spurring out of the recent corporate updates. Investors on the message boards also have a generally positive attitude towards the ticker. And yet, for some reason, QASP fails to perform. It ended last week’s trading with a couple of consecutive red days and lost nearly 28% of its market cap. It managed to open today’s session with a gap up, but about forty-five minutes in, it’s in the red once again. Unfortunately, that’s not the only problem.
As we mentioned in our previous articles, QASP‘s latest financial report shows that they’re not exactly flush with cash. Indeed, the figures are now more than six months old, but, since the company is not able to file the annual statement on time (a notification of late filing was published on March 31), we’ve no idea if they have managed to solve some of the issues.
There are also a few questions around the share structure that will hopefully be answered by the report, but while we’re waiting for it to come out (the expected publishing date is April 15), we might as well mention that this is not the first series of positive updates coming out of QASP‘s headquarters.
As you can see from this press release, back in January 2013, they announced a letter of intent for the acquisition of a company called Holdings Aviation Corp. The deal was supposed to bring millions in revenues to QASP‘s balance sheet, but, as is clear from the latest statement, this hasn’t really happen.
The question is: “Will investors be disappointed by the new MJ business as well?“. We’ll need to wait and see.
One thing is for sure though – doing a lot of due diligence and weighing the risks carefully is absolutely essential.
QASP wasn’t the only ticker to slip and fall during Friday’s session. Smart Ventures Inc (OTCMKTS:SMVR) experienced a pretty terrible crash as it lost nearly a third of its market cap while shifting more than $1.1 million worth of stock. Fastfunds Financial Corporation (OTCMKTS:FFFC)’s drop wasn’t quite as dramatic. It wiped out 18% of its value while logging a dollar volume of around $622 thousand.
