SK3 Group, Inc. (OTCMKTS:SKTO) Jumps Up On Merger Announcement
The last two weeks have been quite rough for the stock of SK3 Group, Inc. (OTCMKTS:SKTO).Out of the last 10 sessions they have managed to close in the green only twice while suffering corrections through seven sessions in a row. As a result SKTO dropped from above 5 cents to $0.0.276 at the end of Monday, a loss of nearly 50% in value.
The last time SKTO posted a day with significant gains was February 14 when the first bottles of Dharmanol were shipped. It seems that without the PRs reminding traders about the company SKTO tends to slide towards the bottom. Yesterday’s session only confirmed the pattern with the stock once again surging upwards by 18% reaching $0.036. Traded volume of 44 million shares was below the average for the company of 47 million but still tripled the 12 million from the previous session.
Admittedly the news that enticed investors to return to SKTO was quite significant indeed. They announced a merger with Alternative Energy Partners, Inc. (OTCBB:AEGY). The controlling interest of both companies is held by iEquity Corp and AEGY‘s site PharmaJanes was the primary marketing platform for SKTO‘s cannabis products. According to the PR the two companies will merge into a new holding entity with the final details of the deal currently being worked out. The merger agreement is expected to be signed in the next 30 days.
During the same period an audit on SKTO“s financials weill be taking place and shareholders of the company will finally be able to verify the millions of reported revenues. More specifically at the end of September 30, 2013 SKTO had:
• $129 thousand cash
• $22.7 million current assets
• $2.3 million current liabilities
• $17.5 million revenues
• $3.2 million net income
The entity created after the merger is supposed to succeed the reporting obligation to the SEC and will be applying for a new ticker and CUSIP number. The merger will also deal with the previously announced by SKTO dividend in the form of 100 million AEGY shares.
The news will certainly keep interest in the company high during the month of March so we might see a lot of volatility displayed by their stock with traders deciding which of the two to keep. Yesterday pushed upwards by the announcement the stock of AEGY skyrocketed by nearly 70% returning to $0.009 per share. In early trading today SKTO opened with a gap up at $0.34.
