Auri Inc. (OTCMKTS:AURI) Explodes On Up-listing News
Auri Inc. (OTCMKTS:AURI) added 748.75% to its market value yesterday, after making some pretty bold announcements.
As per its PR, AURI is to up list to the upper tier of the OTC Markets – OTCQB or even OTCQX. Further, it seems that the company’s management has decided to go through with a 3 year outstanding shares lock up.
Both news got investors excited. The latter one – presumably, because it reassured them that investor value is to be safe from dilution for three whole years. However, investors would do well to note that dilution could come from sources other than insider selling.
And one look at the company’s share structure statistics makes it clear that dilution is certainly an issue of grave importance with AURI:
- as of March 31, 2014 AURI had 93.4 million shares issued and outstanding
- as of March 31, 2015 AURI had 1 BILLION shares issued and outstanding
As for the former news – it also seems moot. True, becoming a fully reporting company is certainly praiseworthy, but investors would do well to remember what AURI reported in its latest filing, for the period ended March 31, 2015:
- Checking/Savings – $8 thousand
- Total current assets – $255 thousand
- Total Current Liabilities – $2.92 million
- Revenue – $323 thousand
- Net Loss – $75 thousand
Long story short – AURI rose on a wave of hype, caused by news that seem meaningless and irrelevant upon closer examination. Its filings do not suggest that it has anything other than hype going for it – and we all know how hype jumps end.
With this in mind – let the buyer be ware.
