Minerco Resources, Inc. (OTCMKTS:MINE) Continues Its Descent
Minerco Resources, Inc. (OTCMKTS:MINE) has been going down the charts for a while. In the past week alone, MINE lost about 27%. With no news around the company to give investors reason to expect a comeback, the decline continues.
The slide began in late April when MINE held its conference call to supposedly discuss its “operations and business outlook“. Seeing as the announcement of the conference call spurred the excitement around the company in the first place, the results would be decisive for the investors’ sentiment.
That was indeed the case, but not for the better. MINE‘s decision to provide a limited amount of information on its new branch of marijuana infused fizzy drinks was a disappointment. People’s expectations were not met and understandably, the stock crashed.
Although there was a correction a couple of days later, it was followed by a further decline. MINE has since made no efforts to get investors’ trust back. The last news on the company came on May 7, when MINE announced it had secured a $2 million line of credit agreement with Post Oak, LLC.
This was the latest of a number of agreements the company has recently entered. On April 8 and 9, MINE settled a couple of loans with LG Capital Funding, LLC by prepaying the total sum of $79 thousand. A week later, the company entered into an exchange agreement with MSF International, Inc. for a note of $25 thousand. This would be the second exchange with the note now being due July 1, 2014.
It seems the company is trying hard to secure financing to fund its operations. The numbers in its latest report, the 10-Q for the period ended January 31, 2014, can shed some light on their financial state:
- Cash: $24,5 thousand
- Revenue: $5,147
- Total assets: $85,1 thousand
- Total liabilities: $2,8 million
- Net loss: $34,7 thousand
The company is low on cash and has barely made any revenues since its inception. There is also the issue of accumulating net loss and liabilities. With the recent loans in mind, MINE may indeed be having financial difficulties.
At this point, the question is what the company’s next announcement will be and when will it be out. Investor forums have been anticipating a press release for a while. It has been two weeks of silence now.
In the case of a company failing to provide up-to-date information for some time, investors should do their own due diligence before even thinking about investing.