The Pump For Guar Global Ltd. (OTCMKTS:GGBL) Begins
Although Guar Global Ltd. (OTCMKTS:GGBL) have been actively traded for less than a week exactly as we warned you in our previous article they are already being targeted by paid pumpers. For now only Small Cap Fortunes are sending out alert emails touting the company for a compensation of $10 000 and if this turns into a more widespread promotion remains to be seen.
GGBL caught the attention of the market last week when they started shifting some significant blocks of shares during the trade sessions. Although they quickly dropped form the initial $0.70 per share for the last three sessions the ticker managed to recover and as of Friday is sitting at $0.68. Despite the short duration of the last session GGBL were capable of placing among the top traded stocks on the market with a total of 660 thousand shares changing hands.
Although GGBL are not directly involved in the oil and gas drilling they are however still linked to one of the favorite industries for pumpers. GGBL‘s plan is to grow the guar plant which contains a gelling agent that is primarily used in the hydraulic fracturing of oil and gas. It all sounds promising but GGBL have been in business since 2007 as a software developer for real estate agents and switched to agriculture just a couple of months ago after acquiring the company Pure Guar for less than $1700.
The red flags don’t stop there though. According to the annual report for the fiscal year ending July 31, GGBL can rely on the following financials:
- $45,289 cash
- $140 thousand current assets
- $783 thousand current liabilities
- no revenue since inception
- $497 thousand net loss
In order to fund their new guar field in India GGBL entered into another loan agreement for $200 thousand that can be converted into common shares at a price of $0.25 per share, or just a third from the current market. Since November last year this is the fifth convertible note issued by GGBL. The notes are for various amounts but all of them share the same conversion price of $0.25. And if this isn’t enough to make you cautious in 2008 the company sold 25.2 million of its shares for just $0.0017 each. If those people are still holding to the shares they stand to gain millions.
GGBL is an extremely risky choice to play so doing your own due diligence is paramount before committing to anything. Other companies who managed to move noteworthy amounts of their shares during Friday’s session are Nutranomics, Inc., f/k/a Buka Ventures, Inc. (OTCBB:NNRX) who closed nearly 7% up and 22nd Century Group, Inc. (OTCBB:XXII) with a 6% gain.