The Pump for Grid Petroleum Corp (OTCMKTS:GRPR) Comes to Nothing

Shortly before yesterday’s opening bell, Penny Stock Locks as well as a few of their affiliated newsletters pocketed a grand total of $9,500 and in exchange, they tried to convince their subscribers that investing in Grid Petroleum Corp (OTCMKTS:GRPR) might not be a bad idea at all. We’re pretty sure that many people would have disagreed.

The ones who have been invested in the company for a while, for example, have quite a story to tell. Unfortunately, it doesn’t seem to have a happy ending.

The company has existed under its current identity for more than six years now, and during this period it has gone through quite a few promotional campaigns. Many emails have been sent, many promises have been made, but in reality, nothing came to fruition.

The press releases have also been quite optimistic, but they too failed to bring the company any actual value. The latest 10-Q is on hand to prove the point. Here’s what it says:

• current assets: $42 (that’s forty-two US dollars, not a penny more)
• current liabilities: $3,341,472
• NO revenue
• quarterly net loss: $376,863

If you take the time check out to GRPR‘s previous reports, you’ll see that the figures in them are just as woeful which goes to show that the financial situation has been a rather big problem for quite a while. It hasn’t been the biggest one, though.

Many penny stock companies have little choice but to finance their operations with the use of convertible notes. It’s a relatively easy way of raising money, but unfortunately, it puts the common shareholders in peril. Quite a few OTC enterprises have absolutely drowned their stocks in dilution, and on that front, GRPR definitely stands out from the crowd.

Between April 2013 and March 2015, the company issued a stomach-churning 6.2 billion shares as a conversion of about $352 thousand worth of convertible notes. In other words, about 90% of the issued and outstanding stock at the end of March of this year saw the light of day at an average rate of $0.00005 (yes, that’s four zeros).

A reverse split was inevitable. Its ratio was 1 for 1,000 and it was effected on September 4. Unfortunately, it too failed to give investors a confidence boost and in the span of a month, GRPR wiped out 92.5% of its value.

Despite all these worrying facts, some people decided to listen to the pumpers which means that yesterday, the ticker ended up registering a dollar volume of nearly $170 thousand. Unfortunately, the risk didn’t pay off. GRPR lost 14% and stopped at $0.006 per share.

Even the pumpers are embarrassed. They sent out some more emails after the closing bell, apologizing about the misfire and promising that their next pick will perform much better. The ones who ended up losing money probably aren’t consoled by the apology. The ones who didn’t sell in the red will most likely wait for a bounce.

While they’re at it, they might want to consider the fact that there was quite a lot of toxic debt still outstanding at the end of the second quarter. They should also bear in mind that immediately after the reverse split, there were just under 6.9 million shares issued and outstanding. Yet, yesterday, in a matter of just six and a half hours, investors traded more than 22 million shares.

You are the ones who should draw the conclusions.