Virtus Oil and Gas Corp. f/k/a Curry Gold Corp. (OTCBB:VOIL) Coninues to Get Pumped, Undisturbed by the SEC
Virtus Oil and Gas Corp. f/k/a Curry Gold Corp. (OTCBB:VOIL) closed last week in the red. On Friday the stock underwent another negative session and dropped by 5.36% on a volume of 578.3 thousand shares. It’s currently sitting at $1.59.
Let’s go back to the distant date of July 17, when an email alert by BuyPennyStocks.com was received. The promoter called VOIL its “Top Pick for 2014”, for which it was compensated with $12.5 thousand, and thus began VOIL‘s extensive pump campaign. This was only the first of many email alerts pumping VOIL, as they continued to pop up regularly in the following months. The latest one came on Oct 26 and was from Mister X, who received $6 thousand as compensation.
However, the pump on VOIL featured much more than mere email alerts. The stock underwent quite the prolific promotional campaign, as it also used articles, landing pages (this one and this one), a hard mailer and even phone calls.
At the beginning the pump was highly effective, as it pushed the stock as high as $1.71 on July 31, in a matter of ten sessions. For comparison, on July 17 when the first email alert was released VOIL closed at $1.21, and if you do the math, by July 31 the stock managed to gain over 41%. Since then the stock has been going up and down the charts, surging one day and crashing the next. But that’s not surprising considering this is a pumped stock. What is surprising, is that the SEC has taken no actions against VOIL‘s ongoing promotional campaign, as it has been going on for quite some time now. Only time will tell whether there would be any consequences for VOIL.
If you look at the company’s reports, they don’t inspire much investor confidence either. For the latest quarter ended Aug 31, the company reported working capital deficit, an increased net loss, and, being a development stage company – no revenues. VOIL‘s cash situation has improved, but the bar wasn’t set particularly high with the previously reported $632.
Even though the cash supplies have increased they are still a far cry from where they need to be. VOIL has a pending payment of $2.5 million, which have to be transferred in order for the company to start drilling the land it acquired in Iron County, Utah. The transfer has to happen thirty days prior to the spud date, which was originally going to be “February 03, 2015”. However, the latest 10-Q disclosed that the spud date will no longer be in February, but on “September 1, 2015”. For shareholders that is some pretty bad news, because the later date means that VOIL will start its operations later than expected, which in turn will prevent it from generating any profits in the near future.
Unfortunately for shareholders, the bad news don’t stop there. The 10-Q also shows that VOIL and an entity called Fieldstone Industries have entered into a lot of Securities Purchase Agreements. The company has issued a great deal of shares to Fieldstone with prices ranging from $0.40 per share, to $0.74, $0.97 and $1.07. This should not be ignored by potential investors, because if Fieldstone decides to dump its shares on the open market, that could have a strong effect on VOIL‘s price.
It is always best to avoid making an investment based solely on hype, especially one caused by a pump campaign. Do your own due diligence before deciding whether or not to put money on a stock, and never invest money you cannot afford to lose.
