Rainbow Coral Corp. (OTCMKTS:RBCC) Gets Smashed Again
Rainbow Coral Corp. (OTCMKTS:RBCC) got busted another 13.89% down the charts yesterday, and this time it happened on a much bigger dollar volume. Why?
Well, let’s just say that in spite of what the company’s name suggests, it’s not all sunshine and rainbows in RBCC land. No matter how “aggressively” it has been “pursuing potential partners”, investors are unimpressed with it. And there is a very simple and obvious reason for that.
If one is to disregard RBCC‘s boastful words, the company’s actual state of affairs fails to impress:
- cash – $2740 (NUMBER NOT IN THOUSANDS)
- current assets – $4524
- current liabilities – $518 thousand
- quarterly revenues – $28 thousand
- quarterly net loss – $137 thousand
And if you think that was bad enough, just wait until you get a glimpse of the company’s share structure history.
Its report may not be all that helpful in many other regards, but they make one thing clear as day – RBCC investors have suffered a lot of dilution. Suffice it to say that as of November 15, 2014, RBCC had 33.1 million shares common stock outstanding.
On May 29, 2015 the company performed a 1 for 100 reverse split, which should have left it with about 330 thousand shares issued and outstanding. As of August 14, 2015, 8.8 million shares of common stock were issued and outstanding.
Investors would do well to note that most of the shares that caused that horrendous dilution came into existence as a result of conversions of debt at prices as low $0.019! Another relevant detail is the fact that the company’s authorized shares are 480 MILLION – which is not reassuring to say the very least.
This being the case, it is really no wonder that RBCC is falling – and frankly, it would not be surprising to see it sink a lot further down.
