Valmie Resources Inc. (OTCBB:VMRI)’s Bounce Didn’t Last
Valmie Resources Inc. (OTCBB:VMRI) finished the last session before the long weekend in the green, but us already red in today’s early trading. And how could it not be?
It seems like investors were right to expect a dead cat bounce, because that is exactly what Friday’s session turned out to be – a brief period of respite that broke VMRI‘s crash for just one session. Then again, that’s what one could reasonably expect from a company that issues millions of shares of stock at prices much lower than its current price.
To elaborate – VMRI‘s latest S-1 gave investors some pretty horrible numbers. It turns out that until relatively recently, the company has been pumpung out shares of common stock at rates of $0.1 per share as a result of toxic conversions. How much of those have entered circulation?
As of April 14, 2016 VMRI had 64 million shares of common stock. Since then, the company has issued a couple of million more – including that one time it issued another 2 million shares of common stock in return for just $200 thousand worth of funding.
One look at the documents describing the company’s rampant toxic funding habits more or less reveals why VMRI didn’t really have a chance of a protracted bounce. Well, that and the fact that its market cap after a horrible crash is still as bloated as $80 MILLION, while its achievements to date are as unimpressive as they get:
- Cash and cash equivalents – $24 thousand
- Total Assets – $58 thousand
- Total Liabilities – $268
- No Revenues
- Quarterly net loss – $83 thousand
Long story short – it is no wonder that the SEC has branded VMRI with the dreaded skull and crossbones
stamp. VMRI has a lot of shortcomings that threaten investor value, and it doesn’t seem like it is trying to mitigate them at all. In fact, the exact opposite seems to be true.
Investors should definitely take a note of that and act accordingly.