Will Reve Technologies Inc (OTCMKTS:BSSP) Keep Its Gains?
After a devastating slide down the chart of five consecutive sessions of massive losses the stock of Reve Technologies Inc (OTCMKTS:BSSP) registered two sessions of gains and closed at $0.0004 at the end of last Thursday’s trading. On Friday, despite more than 371 million shares changing hands, the ticker finished the trading session flat at $0.0004. Is this a sign that it might be stabilizing?
Until just a few weeks ago the stock of the company was sitting at the absolute bottom of the chart and saw virtually no trading. On April 25, however, BSSP announced that it had entered into a Purchase and Sale Agreement with Canteck Pharma, Inc., a company that has developed and patented a technology know as Irreversible Pepsin Fraction. This change in business couldn’t have been a more welcomed sight by the company’s shareholders as the results from the previous operations of the company have been simply atrocious. At the end of the third quarter of 2015 BSSP were left with:
• $1000 cash and current assets!!!
• $699 thousand current liabilities
• ZERO revenues since inception
• $60 thousand net loss
On May 10 BSSP announced that the agreement with Canteck was now effectively closed. The company may have acquired a new business but that doesn’t make the red flags hanging above it any less serious.
Let’s start with the fact that we still have to rely financials that are now more than 7 months old due to the fact that BSSP has not filed either of its annual report for 2015 or the quarterly report for the first three months of 2016. As a result the OTC Pink Limited Information warning sign was slapped on the company’s OTCMarkets profile page. What we do know, through the 8-K filings of the company, is that BSSP‘s common stock has been diluted severely.
Between November 23, 2015, and January 14, 2016, approximately 400 million fresh shares were issued and causing the outstanding shares of the company to grow from around 371 million to over 771 million. This is just the start though -by January 26, in just 12 days, another 480 million shares saw the light of day. And then there is the little fact that in order to close the deal with Canteck BSSP agreed to issue 2.5 BILLION restricted shares. Back in November, last year, BSSP increased their authorized shares from 1 billion to 5 billion but if things continue at the same rate they might soon max out even that amount.
The risks surrounding BSSP demand the use of caution. Do your own due diligence and adjust your trades accordingly.
