Veriteq Corp (OTCMKTS:VTEQ) Approaches Rock Bottom Once More
On May 8 Veriteq Corp (OTCMKTS:VTEQ) closed at $0.0002. Just two sessions later however the stock of the company reached a close at $0.0012 for an increase of nearly 500%. The upwards surge may have been impressive but as we warned you in our previous articles it was not supported by anything.
Indeed as fast as the stock soared up the chart it came crashing down equally as fast wiping huge chunks of its gains and dropping to $0.0003 at the end of Friday’s session. Even the fact that on that day VTEQ published a new PR announcing a $100 thousand purchase order for their products failed to prevent their stock from losing another 25%.
VTEQ is a company that demands serious due diligence and all those who decided to jump in based solely on hype may be regretting their decision by now. Let’s start with the financial results of the company. The annual report for 2014 revealed that VTEQ had:
• $77 thousand cash
• $186 thousand total current assets
• $7.3 million total current liabilities
• $151 thousand sales
• $3.9 million net loss
Believe it or not the depressing balance sheet is far from the biggest red flag surrounding VTEQ.
On February 11 the company implemented a massive 1-for-1000 reverse split that reduced their outstanding shares from 1.2 billion to 1.2 million. As of March 31 that number had surpassed 30 million shares. A Schedule 13G statement filed on May 12 revealed that by then the outstanding shares had reached 383 million. On that same day however over 758 million shares got traded on the market. The very next session saw an even bigger daily volume – 920 million shares.
The financial report for the first quarter of 2015 that was supposed to be filed last Friday was going to show what the current share structure of the company really is. Instead of the report VTEQ submitted a notification of late filing which gives them a 5-day extension in which to complete the quarterly.
It should be obvious that VTEQ is an extremely risky choice. Do extensive research, take into account the numerous red flags and adjust your trades accordingly.
