In February Primco Management, Inc. (OTCBB:PMCM) decided to ride the marijuana hype and announced that they will be joining the newly emerging industry. The news quickly caught the attention of the market and on February 18 PMCM rose above $0.0045 per share. Well, the initial euphoria started to disappear equally as quickly and so did most of the gains in share price.
Yesterday their stock once again jumped upwards by more than 56% and closed the day at $0.0047. Traded volume doubled that of the previous session reaching more than a billion shares. Such an impressive outcome certainly looks promising but the stock’s performance throughout the session showed a lot of volatility. PMCM
opened at $0.0049 and in a matter of minutes plummeted down to $0.0031. For the rest of the trading day it slowly recovered but it failed to return to its opening price.
For now optimism among traders seems to be holding thanks to the last couple of PRs issued by the company. Last week they acquired Suzie Q, a licensed marijuana collective, and thanks to the 8-K form covering the deal we found much of the details missing in the PR. PMCM
has agreed to pay a total of $250 000 in cash and 25 million shares for the acquisition. The cash sum will be delivered in several payments consisting of $50 000 each.
On Monday another PR statement revealed that the planned increase of the authorized shares to 15 billion will be postponed until the audits of the previous music related acquisitions – the Top Sail and D&B, have been completed. We don’t know if the delay will have any effect on the $10 million stock purchase agreement with Southridge Partners II, LP which seems to be the primary source of funds for PMCM
Six months ago at the end of September they had the following financials to rely on:
• $115 thousand cash
• $3.1 million current assets
• $3.5 million current liabilities
• $29 thousand revenues
• $1.6 million net loss
The company had $2.3 million in short-term debt and around $700 thousand in short-term convertible debt. As you can see the company is depending entirely on the issuance of shares in order to finance its operations and as a result the number of outstanding shares rose from 1 billion on November 18, 2013 to 4.8 billion out of the 5 billion authorized on February 24, a period of just a little more than three months. The annual report for 2013 should be filed by the end of month and then we will see if it shows any signs of progress.
Until then the stock remains extremely volatile and needs the help of optimistic news in order to keep its positive momentum. Any trades should be exercised with caution and only after doing your own due diligence.
Yesterday the stock of Viking Minerals, Inc. (OTCMKTS:VKML
) slid down for the first time in the last 8 sessions. The company lost 12% of its value and closed at $0.11 but in early trading today momentum seems to have once again shifted and the stock opened with a gap up at $0.146.