Tamino Minerals Inc (OTCMKTS:TINO) Caves in Under the Pressure
Tamino Minerals Inc (OTCMKTS:TINO) has been gathering quite a lot of attention over the last two days. First, on Wednesday, it spiked for no immediately obvious reason, added almost 40% to its value, and finished the day at $0.125 per share.
About forty-five minutes after yesterday’s opening bell, the management team issued a rather well-timed press release and said that the company is about to target no less than five “rich new properties”. It looked like the announcement can push the price even further up, but unfortunately, instead of adding some more value, TINO crumbled. It incinerated more than 45% of its market cap on a dollar volume of around $430 thousand which means that it’s currently sitting at just under $0.07 per share.
The drop is indeed pretty scary, but we’re quite sure that some of the more adventurous investors might be tempted to have a look at TINO. As we have often said on these pages, however, they will be better off doing some research and due diligence first. So, what will they find?
A few discrepancies, for a start. If you take a look at the press releases, you’d be forgiven for thinking that the company is based in Montreal. The filings, however, tell us that its principal offices are located in Mexico.
Speaking of filings, according to the latest report, the company “has several properties in a highly prospective area for Gold in Mexico called ‘Las Amalias Mine’”. The balance sheet, however, tells us that TINO‘s assets (all $650 thousand of them) consist of “mineral investments” (no properties are mentioned). It also tells us that on June 30, the company had:
- more than $1.5 million in current liabilities
- NO revenue since inception
- a quarterly net loss of $45 thousand (consisting of officer compensation)
Back in March, TINO announced that they have signed a funding term sheet agreement with an unnamed institutional investor which was supposed to provide them with $2 million in capital. Since then, we’ve seen no further details or updates.
Another thing you should bear in mind is the share structure. According to the latest financial report, on June 30, the number of issued and outstanding shares was hovering around 12 million and the float amounted to a little over 1.7 million. Yesterday, however, investors traded nearly 5 million shares which goes to show that the freely tradable stock has most likely increased significantly.
All in all, there’s not much that could entice you to put your hard earned money on the line apart from yesterday’s press release. Some people put too much faith in the announcement and they ended up disappointed. Hopefully, the horrific crash will serve as a lesson for them.