VeriTeQ Corp. (OTCMKTS:VTEQ) Nearly Wipes This Week’s Gains
Sub-penny pink sheets have always been a place of intense drama. Heavy volatility rocks many sub-pennies and it’s currently squeezing the daylights out of VeriTeQ Corp. (OTCMKTS:VTEQ). The stock went on a spectacular run earlier this week, climbing out of the bottom end of triple zeroes and hitting $0.0012 on Tuesday. The price spike took place on practically zero news and no new filings.
The massive jump was followed by two equally intense sessions, only VTEQ was hurtling headlong back to the lower end of triple zeroes. Yesterday the stock slid another 33% and stopped at $0.0004 per share.
Despite the two-day drop very nearly annihilating all gains made on Tuesday, investors are still in full-on hype mode on discussion boards, working each other in a frenzy, accusing market makers of manipulating the stock and reassuring each other all the evil shorters and sellers are out by now.
Traders should really be asking some much more important questions, such as ‘what is going on with the company’s share structure?’ On May 12 the company put up a Schedule 13G, which listed LG Capital Funding LLC as the owner of 34.4 million VTEQ shares, comprising 8.97% of the company’s total of 383 million total outstanding common shares. This number was reported literally on the very same day when VTEQ traded 758 million shares on the open market. The next day the daily volume was 920 million.
Even if we assume that the company miraculously shifted nearly THREE TIMES its OS count within a single session, there’s also the matter with the reverse splits VTEQ has been through.
The latest slap in the face for long shareholders came in February 2015, when VTEQ did its FOURTH reverse split, this time a 1-for-1000 deal and reduced its shares from 1.2 billion to 1.2 million. The company went to merrily pump out a mind-boggling amount of new shares in the three months following the reverse split. The 1.2 million total outstanding common shares as of early February 2015 turned into the God-knows-how-many shares as of the present moment, considering VTEQ traded over 920 million shares on Wednesday.
Meanwhile, people on discussion boards for the stock are reassuring everyone who never took a look at official filings or daily volumes that there is “absolutely no dilution occurring”. The poster did not explain in which alternate universe going from 1.2 million to at least 383 million outstanding shares in three months is “no dilution”.
In yesterday’s session VTEQ traded 789 million shares.
