Workhorse Group Inc. (OTCMKTS:WKHS) Explodes Up The Charts
Workhorse Group Inc. (OTCMKTS:WKHS) once more jumped on an increased volume yesterday, in spite of the lack of developments surrounding the company.
Interestingly enough, WKHS managed to add 49.69% yesterday, on a dollar volume fifteen times higher than has been usual for the ticker in the last month or so. The odd thing about this turn of events is that it was not caused by a paid pump, as one would expect. Nor was the jump driven by hype caused by an optimistic press release, as is more often than not the case when we’re not dealing with paid pumps.
The source of the investors’ enthusiasm can’t be found in WKHS‘s reports either, as the company hasn’t really filed anything new in the last four weeks. Furthermore, its latest financial report failed to impress:
- cash – $161 thousand
- current assets – $543 thousand
- current liabilities – $6.1 million
- quarterly revenue – $68 thousand
- quarterly net loss – $1.8 million
And the truly sad part is that these mediocre looking numbers aren’t the company’s only red flag – no, not by a long shot.
Between the end of June and the middle of July, WKHS racked another $600 thousand worth of convertible notes, as well as an agreement to sell up to $500 thousand worth of convertible debentures over the next 36 months.
All of the newly printed notes are convertible into common stock either at fixed prices between $0.20 and $0.30, or at discounts from the current market price ranging from 35% to 40%, whichever is lower.
Investors should well note that fact, as it may end up having a profound influence on the ticker’s movement at some point in time – and now is as good time as any, since WKHS stock is currently more liquid than it has been in quite some time.
