Stock Mister Pumps Up Arcis Resources Corp (OTCMKTS:ARCS)’s Volume
There are many red flags surrounding Arcis Resources Corp (OTCMKTS:ARCS). In fact, just about every single problem that we normally associate with OTC companies is plaguing ARCS as well.
The company has already gone through a name change and an old business plan. The original idea was to work in the oil and gas industry, but things didn’t go according to plan. At one point, ARCS even stopped filing its financial reports and it wasn’t until January 2015 that the management team finally decided to terminate the SEC registration and adopt the alternative reporting standards.
ARCS is now current with its reporting obligations, but that doesn’t mean that its financial situation is rosy. Here, for example, is what the figures looked like at the end of June:
- current assets: $22,828
- current liabilities: $493,229
- quarterly revenues: $21,303
- quarterly net loss: $121,621
Despite the appalling financials and the historical failures, ARCS now seem determined to convince us that they are on the right track. Some acquisitions were completed in Q1 of this year and a few press releases followed.
First, in April, the management team officially announced ARCS‘ entrance into the marijuana industry and they said that they’ll developed a Tinder-like mobile applications aimed at pot heads. A few months later they announced that they’ll work on some sort of hemp seed coffee which, they say, isn’t bitter, and yesterday, they issued their third press release since becoming a marijuana related company.
The PR in question is not that interesting. It says that an advisory agreement has been signed with MaryJane Group Inc (OTCMKTS:MJMJ) – an appallingly performing pot stock. What is peculiar about the announcement is the timing.
According to the financial report, the agreement in question was signed back on July 15. Yet, it wasn’t announced until yesterday, just minutes before Stock Mister, Damn Good Penny Picks as well as some other newsletters started pumping the ticker.
We’ll leave it up to you to decide whether this is a coincidence, and in the meantime, we’ll note that the touting worked. ARCS logged its first heavy volume session in months and after a 135% jump, it reached a close of $0.0033 per share.
So, the investors who timed their trades well managed to get in and get out quickly enough with some money in their pockets. But will there be other people who will profit from the pump which, by the way, costs no less than $40 thousand?
We don’t know. What we do know is that the financial statement lists $267,500 under the Convertible Debt section of the balance sheet and we also know that the conversion provisions weren’t disclosed.
