First Liberty Power Corp. (OTCMKTS:FLPC) Are On A Steep Slide
Since the middle of November shareholders of First Liberty Power Corp. (OTCMKTS:FLPC) have had little chances to be positive. The stock of the company has been on a steep downwards trend and on Friday it dropped another 5% to less than 3 cents per share. Out of the last 10 trading sessions FLPC has closed in the red 7 times.
A big reason for the recent pessimistic performance of the stock must be the annual report FLPC filed on November 13. It revealed the rather grim financial situation of the company:
- $5.2 thousand cash
- $8.3 thousand current assets
- $1.8 million current liabilities
- zero revenues since inception
- $2.7 million net loss
Admittedly in October their Fencemaker mine started production and as of November 20 had around 350 tonnes of antimony ready for shipment. This means that FLPC might finally start generating revenues but we doubt that they will be enough to cover all the operational expenses. For the shareholders that means that FLPC will still be going to rely mainly on the issuance of debt.
The company has a multitude of convertible notes some of them with the notorious toxic funders Asher Enterprises Inc. and Magna Corp. Investors on discussion boards have created special groups dedicated to unearthing all the dealings of the two. For the fiscal 2013 FLPC has issued a total of 289 million shares which forced the company to double the amount of its authorized shares and now it stands at 1 billion. In past five months that weren’t covered by the report FLPC entered into three new convertible notes and issued almost 50 million additional shares.
The company has been progressing with its business plan and has another 3 mine sites that are not yet operational. Still their past involvement with paid pumps and the severe dilution of their shares should not be taken lightly. Doing your own research and weighing in all the risks should always precede any trades involving pennystocks.
During Friday’s session Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX) continued its hype-driven climb and finished the week at $1.23 per share. Makism 3D Corp (OTCBB:MDDD) also had a positive end of the week but sadly the 30% recovery was not nearly enough to compensate the 60% wiped in ht previous three days. With the pump for the company coming to an end a return to prices of above a dollar might prove to be quite difficult.