Valmie Resources Inc (OTCBB:VMRI) Experiences a Crash Landing
The first wave of promotional alerts for Valmie Resources Inc (OTCBB:VMRI) started flooding investors’ inboxes in mid-March and at the beginning, the ticker was performing rather well.
VMRI managed to run from a pre-pump price of just over $2 per share all the way to a high of more than $3.20. Unfortunately for the people who put too much trust in the promoters’ forward-looking statements, however, it all came crashing down really soon. The ticker registered its last green session almost two weeks ago and since then, it has lost more than 56% of its market cap. During yesterday’s session alone, VMRI managed to wipe out almost a third of its value and it closed the day at just $1.40 per share.
The pumpers remain unperturbed and they still seem to be sending out emails, but by the looks of things, the promotion appears to be well and truly over. VMRI announced yesterday that it’s going to participate in the Unmanned Systems 2015 conference next week and urged potential acquisition candidates to contact the management team in order to discuss future partnerships. Investors, however, couldn’t care less.
And we can’t really blame them. After all, when VMRI was traded at more than $3 per share, its market cap was hovering around the $180 million mark. The people who were jumping in back then were expecting some solid figures from the 10-Q for the period ended February 28, but instead, they were presented with this:
- cash: $5,277
- total assets: $31,127
- total liabilities: $349,746
- NO revenue since inception
- quarterly net loss: $135,320
All in all, both the company and the stock has left some investors bitterly disappointed. Others, however, did their due diligence and remained on the sidelines. And for good reason.
Some digging around the SEC filings reveals that about 59 million shares of common stock (which represented 100% of the float not that long ago) were originally sold for under $10 thousand. More recently, at the beginning of the month, VMRI decided to clean up its balance sheet a little bit and it converted $383,927 worth of debt into 3,839,270 shares of common stock (a conversion rate of just $0.10 per share).
These, as well as a few other red flags surrounding VMRI were all mentioned in our previous articles. Hopefully, they have helped you dodge a few holes in your pockets.
About half an hour after today’s opening bell, VMRI is sitting at $1.15 per share (another 18% in the red).
