Zulu Energy Corp. (OTCMKTS:ZLUE) Starts Sliding
On Wednesday the stock price of Zulu Energy Corp. (OTCMKTS:ZLUE) surged an amazing 417%. The ticker dug itself out of double-zero land and made a small splash that is now subsiding quickly. Yesterday the price popped as high as $0.03 but dropped nearly 50% from its intra-day high.
The reason for the commotion was a press release. ZLUE announced the company completed the acquisition of a certain Vortex Brands Co through the issuing of preferred stock only. After the reverse merger the company will be switching its name to Vortex Brands and applying for a ticker symbol change.
ZLUE, a shell company prior to the announced deal, has so many red flags about it that the heavy volume generated seems a bit strange. The company is a Pink No Info entity on the OTC Markets, stamped with the ‘Buyer Beware’ skull-and-crossbones sign. Additionally, it’s been given the “Dark or Defunct” designation. Seeing how the company posted a press release, it should not be defunct, which leaves the “dark” part, explained on the OTC Markets as an entity with “questionable management and market disclosure practices”.
Disclosure is indeed something ZLUE is not very good at. The last financial report the company published is dated September 2008, a little over 5 years ago. The last reported outstanding share number dates back to August 2008 as well. The last filing available is from 2013 and is a Form 15-12G, informing of the termination of registration of ZLUE common stock under Rule 12g-4(a)(1).
Understandably, ZLUE was thinly trades ever since. The company is still keeping investors in a complete informational blackout. There is also no official filing confirming the announced merger with Vortex Brands and detailing the specifics of the deal. Until a filing with details about the deal and consolidated financials is published, there is little solid ground for excitement around ZLUE.
Other heavy volume movers from Thursday’s session include Terra Tech Corp. (OTCMKTS:TRTC) who slipped 9% to a close of $0.47 per share. After a long and hard slide, Alternative Energy Partners, Inc. (OTCMKTS:AEGY)’s daily share volume picked up further and the ticker gained 30%, stopping at $0.003 per share.
