Minerco Resources Inc (OTCMKTS:MINE) Nosedives After Reporting
Minerco Resources Inc (OTCMKTS:MINE) sliced a third of its market value yesterday, when the market had the time to react to the horrible news in its latest financial report.
The OTC Markets pinksheets section has seen a lot of mediocre filings – indeed, the balance sheets of most companies in this tier of the exchange can be called nothing less than horrible. Encouraged by forward looking statements and praise, MINE enthusiasts expected something more than that from their company of choice.
This is why their reaction of revulsion and disappointment is completely understandable, as the figures for the quarter ended April 30, 2015 are truly bleak:
- Cash – $99 thousand
- Current Assets – $1.6 million
- Total Current Liabilities – $5.1 million
- Sales – $614 thousand
- Net loss – $2.5 million
The fact that the company has managed to rack over $5 million worth of debt while making ten times less in revenues speaks for itself, as does the meager number given next to “cash”. But that’s not all that drove investors away from MINE.
To add insult to injury, the company has issued nearly half a billion shares of common stock in the last six months:
- As of December 22, 2014 the registrant had 3,033,025,343 outstanding shares of its common stock.
- As of June 19, 2015 the registrant had 3,496,235,155 outstanding shares of its common stock.
A quick check confirms that said issuance has been done mostly due to the conversion of debt into common shares, at rates of discount as dire as as “50% of the market price … 20 days before conversion” and “a fixed price of $0.00025”.
This being the case, it really should be no wonder that MINE‘s investors are thoroughly displeased with the company and that said displeasure is most likely to take the form of a protracted and rather ugly fall.