Stevia Nutra Corp (PINK:STNT) Spice up Their Lives

In a world in which the way you look is more important than just about anything, people who love sweet things suffer a lot. Sugar causes tooth decay, it’s not very good for your health and it makes you fat. Luckily, now there is a 100% natural sweetener that does none of those things but it still tastes just as good as the real thing and Stevia Nutra Corp (PINK:STNT) want to make it in this particular industry.

Promoters Research OTC would like to inform us of STNT‘s big plans and they have sent us an email with which they try to convince us that right now is the perfect time to buy some shares. We’re not too easily impressed, though and we prefer to check the company out ourselves instead of trusting pumpers with unimpressive track records.

There’s been a lot of commotion around STNT‘s, usually quite peaceful, office. During the last four days they issued a total of three press releases. On March 15 they informed us that they are ready to start the harvest at their stevia plantations in Cambodia. They also said that they need to get the leaves tested in China to see if they will be usable as raw material for the sweetener. Now, just a couple of days later, they say that they have taken the plants, transported them to Beijing, got them tested and they are apparently quite happy with the results. It seems that STNT are in a hurry.

If these headlines are true, it would mean that they are one step closer to reaching the elusive revenue. All they need to do now is to get the production of the sweetener going and make sure that they are able to sell it for a profit. The thing is, they will need to make some investments in order to do that, and according to their latest quarterly report, their financial situation is not what you’d call stable. Here are the most important figures as found in the 10-Q:

• cash: $2,852
• current assets: $11 thousand
• current liabilities: $160 thousand
• no revenue
• quarterly net loss: $208 thousand

This means that while they are moving forward with the operations part of the business, they will need to borrow a serious amount of money in order to become successful. When we read through the rest of the financial report, we found out that they have already secured a line of credit which could give them up to $3 million. The only problem is, if they are not able to pay the debt off, they will need to issue shares, a lot of them. Judging by the fact that they increased the number of authorized shares just months before they secured the credit line, we reckon that STNT themselves are not sure if they will have the cash to cover the debt.

And what does this mean for the shareholders? Well, they could be in for quite a lot of dilution. That is why, although STNT are moving forward, Research OTC have failed to present us with a trustworthy investment option. Which, by the way, is not the first time that this has happened. They were part of the pumping effort on Graystone Company Inc (PINK:GYST) back in February and while the stock did gain some ground while the excitement was still on, it soon crashed hard.

If STNT rely on the press-releases and artificial hype alone, the same thing will undoubtedly happen to them. That is why, we would encourage them to keep working and get the revenues going. It will also be a good thing if they change their corporate office since the one that you see on the picture is not exactly confidence-inspiring.