One More Pump for Grid Petroleum Corp (OTCMKTS:GRPR)
A couple of weeks ago, Research OTC as well as a few other promotional newsletters tried to pump up Grid Petroleum Corp (OTCMKTS:GRPR)’s share price in exchange for some money. They made a rather big hash of it. Instead of going up, the ticker stumbled and fell 14% to a close of $0.006 per share.
Not surprisingly, once the pumpers left the scene, investors lost interest completely and the ticker slipped further down. The people behind Emedia Advisors, the third party that paid for Research OTC’s pump, however, apparently reckon that there is some unfinished business. They paid a further $10 thousand to Stellar Media Group LLC, the owners of Damn Good Penny Picks as well as a few other pump newsletters, who did a much better job at creating excitement.
The emails started flying in a few hours before the start of Friday’s session and they caused quite a stir. GRPR managed to gain a total of 52% and it closed the week at a hair under $0.003 per share on a dollar volume of about $118 thousand.
That’s all well and good and we’re pretty sure that the people who timed their entry and exit points well managed to make some money on their trades. It’s fair to say, however, that if you’re on the hunt for a long-term investment, you should probably look somewhere else.
As we mentioned in our previous article, the balance sheet is nothing short of atrocious, and the press releases, though optimistic, haven’t been very informative. The management team’s track record doesn’t really inspire much confidence, either.
Well, when we say management team, the responsibilities of President, Director, Secretary, and Treasurer are all taken by a single person – Mr. Edward Aruda. He is a busy man. In addition to running the show at GRPR, he is also supposed to be working in the best interest of Source Gold Corp. (OTCMKTS:SRGLD) – he is the sole officer and director there as well. SRGLD is currently sitting at a little over $0.03 per share, but it’s there only because of a massive 1 for 2,000 reverse split effected a few weeks ago.
Speaking of reverse splits, GRPR also had to go through one. The dilution coming from the horribly toxic notes the company had acquired over the years was so horrific, that there simply was no other way out. The ratio was also quite terrifying – 1 for 1,000, but on the bright side, it brought the O/S count from around 6.9 billion all the way down to 6.9 million. What the split failed to do was stop the excessive stock printing.
On October 16, an entity called Blackbridge Capital LLC filed a Schedule 13 form and announced that they own 7.4 million shares which represent 9.9% of the company. In other words, the number of issued and outstanding shares back then stood at nearly 75 million. In other words still, GRPR diluted its stock by a mind-bending 984% in a matter of a little over a month. These figures, we reckon, speak pretty well for themselves.
About an hour after today’s opening bell, GRPR is sitting at $0.0026 – 10% in the red.
