Fuse Science, Inc. (PINK:DROP) Surged on Media Coverage, Pulled Back on Financing
Fuse Science, Inc. (PINK:DROP) has had its ups and downs. In less than a month DROP has nearly doubled its price. While previous surges have been mostly associated with Tiger Woods, the current increase has more to do with Daymond John.
After gaining 24.55% on Monday, yesterday DROP pulled back 8.18% and closed at $0.2516 per share with a new volume high of approximately 13.8 million shares.
Monday’s surge probably had something to do with the appearance of Brian Tuffin, CEO of DROP, and Daymond John in Bloomberg’s “Talking Stock with Pimm Fox” last Friday.
Mr. John is a famous entrepreneur and the key person behind FUBU. The company entered into a business partnership with Mr. John in early February. This had an immediate effect on the stock.
Yesterday’s dip came with the information that DROP had entered in a securities purchase agreement and the agreement calls for the company to issue convertible notes and warrants which can result in the issuance of shares under the market price and dilution to current retail shareholders.
The partnership with Mr. John could have positive long term effect on DROP, but it’s too early to know what will happen. So far DROP hasn’t been able to secure enough revenues to turn a profit, or even just cover operational expenses, but that’s something Mr. John should be able to help with.