Pan Global Corp. (OTCMKTS:PGLO) Crumpled

1PGLO_chart.pngIn my previous articles on Pan Global Corp. (OTCMKTS:PGLO) I tried to warn our readers that a crash was imminent. Hopefully, they got out in time before yesterday’s dive.

PGLO held out for about half an hour, but then slid down to about $0.8 per share, and things got worse in the afternoon. Ultimately, it closed down 33.09% at $0.572 per share. The volume reached a little over 8.5 million shares.

One of the problems I mentioned was that the company didn’t have the money to pay for the first closing. On Monday, PGLO entered a loan agreement with Anatom Associates, S.A. and the company may borrow $1 million under the agreement, through the issuance of non-convertible promissory notes.

The second closing must occur no later than 15 business days after power is generated by the project to the grid. At that point PGLO will have to pay another $1.6 million. And even that won’t be the end of it.

In the mean time, the $1.1 million pump job on PGLO is still running with tout emails from Stock Tips. The pump alone is a very solid sign of what traders can expect.

When it comes to crashing, big budget pumps don’t always go exactly the same way. Some partially recover after their first crash, only to crash again later, and others just keep on digging. Even after yesterday’s crash, the market cap of PGLO may prove to be too high to sustain. At $0.572 it’s nearly $89 million.

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