Vega Biofuels, Inc. (OTCMKTS:VGPR) Crashes Despite Acquisition Announcement
The stock of Vega Biofuels, Inc. (OTCMKTS:VGPR) has fallen on hard times lately closing in the green only once out of the last seven sessions. Yesterday the management of the company released their first PR in nearly a month and although it certainly caught the attention of the market it failed to reverse the direction of the stock.
In fact, during yesterday’s trading investors were even more eager to cash in their holdings resulting in a trade volume of over 75 million shares. The volume registered during the previous session was nearly 4 times lower. The massive sale of stock slashed another 18% of VGPR‘s share price and at the end of the day the stock was sitting at $0.0058. Compared to the recent high of above a cent the company has lost more than 50% of its value.
A few months back they was able to sustain a prolonged rising trend through the combination of numerous PRs and what was left of the marijuana hype. Although VGPR‘s biochar product can be used by all growers the company decided to focus on the marijuana and hemp industry. Unfortunately they have yet to register even a dime in revenues. According to the recently filed quarterly report at the end of March VGPR were in a rather dire financial state:
- $31 thousand cash and total current assets
- $184 thousand total current liabilities
- ZERO revenues since inception
- $36 thousand net loss
The picture gets even more depressing when you take into account that VGPR managed to burn through all of their authorized shares and thus were forced to increase them to 2 billion. On March 31 the outstanding shares were 949 million but just one month later they had already reached 1.3 billion.
As we said the company issued a PR article yesterday and in it they announced the acquisition of Gone Green, Inc. This deal allowed VGPR to acquire the right to market their biochar worldwide. This should help them further expand their operations and the company has been talking about significant orders coming from Latin America. The problem is that for now there are no concrete details about the orders and investors may have to wait until the next financial report for more information.
Until then VGPR should be regarded as an extremely risky investment. The horrid financials and the high amount of issued 
shares demand the use of caution. Do your own due diligence and never invest unaffordable sums.
shares demand the use of caution. Do your own due diligence and never invest unaffordable sums. Yesterday Alkame Holdings, Inc. (OTCBB:ALKM) continued to get crushed under the pressure of the paid pump touting their stock. The company dropped by another 13% and fell to a new 52-week low of $0.33 per share. The stock of Minerco Resources Inc. (OTCMKTS:MINE) also suffered a severe correction of nearly 18% and at the end of the day found itself at $0.014.
