Vega Biofuels Inc. (OTCMKTS:VGPR) Jumps Despite Quarterly Performance

Vega Biofuels Inc. (OTCMKTS:VGPR) reached the 1 cent mark again. The stock managed a 13% increase during the last session. Friday was a successful market day for VGPR, despite the relatively low volume.

VGPR published its report on Friday about a week after it was due, and the figures that it reveals are certainly not a plausible explanation for the increase in price. They would actually better explain a movement in the opposite direction. Here is a brief summary of the most important numbers in it:

• total current assets – $32 thousand (all in cash)
• total current liabilities – $184 thousand
• no revenues since inception 
• net loss – $3.42 million

The figures for the first quarter of 2014 don’t differ much from those for the whole 2013. VGPR still doesn’t have enough money, and hasn’t realized any sales.

The company also doesn’t have any recent PRs, that could give some sort of explanation to the Friday climb. The latest corporate update that VGPR announced was that it was in the process of acquiring a six-year old export business. This acquisition is supposed to help the company to meet “the tremendous demand for its biochar product in Latin America”. A few lines after that, the PR reads that there already was an order from Ecuador and the amount of biochar that would be shipped to the country would exceed the entire amount of the product sold so far. This may seem huge at first glance, but considering there is no information about any previous sales, there is no way for the public to get any idea of the actual amount of the Ecuador order.

Biochar is supposed to be VGPR‘s relation to the pot sector. The product is used for soil enhancement and fertilization as the official one-page website informs and the company intends to sell it to marijuana growers.

VGPR‘s relations to the MMJ sector has brought only benefits to the company so far, but may very soon turn against it. A few days ago, the SEC released an official alert on the whole MMJ sector and once more focused on the risks associated with the sector. The alert was soon after followed by Fusion Pharm Inc. (OTCMKTS:FSPM)’s suspension.

We could argue that VGPR isn’t really a pot stock, but we won’t argue that doing your due diligence is important in this case.