VeriTeQ Corp. (OTCMKTS:VTEQ) Steamrolled to Rock Bottom
After a spasm of record share volume on Friday, the share price of VeriTeQ Corp. (OTCMKTS:VTEQ) slammed against rock bottom, stopping at $0.0001 by the closing bell. The company has not had a single green session since filing its quarterly report on May 20. Within this time, VTEQ dropped some 66% to reach its last close.
The company’s chart movement in 2015 has largely been a disaster. In our previous articles on the stock we mentioned what could potentially go wrong and a lot of what we warned about turned out to be even worse than we suspected.
Here is the brief rundown of the company’s balance sheet published in its latest 10-Q:
- $16 (sixteen US dollars) in cash
- $95 (ninety-five US dollars) in Q1 revenues
- $809 in Q1 net loss
Granted, VTEQ actually did grow its revenue against Q1 of 2014 by no less than twenty-one dollars. The laughable balance sheet is not the worst part of the story, however.
The real issue with VTEQ is that the company diluted its shareholders by 5600% within the space of a 45 days. The company’s annual report stated there were 30.8 MILLION outstanding common shares as of March 31. The new Q1 filing revealed that those shares increased to 1.77 BILLION as of May 15.
Traders should also not forget that this mind-boggling dilution took place in the wake of a reverse split to the tune of 1-for-1000 shares with a February 2015 pay date. This means VTEQ managed to go down to $0.0001 after the 1000-fold increase in share price that goes with the reverse split.
If those numbers have still not given you a headache, you may want to read through VTEQ‘s filings and press releases more thoroughly before making a decision.
