NuGene International Inc (OTCBB:NUGN) Seems Unstoppable
$2,289,000 is a lot of money. You can start your own company with it, rent an office, and spend it on developing some products. It might even be enough to start generating revenues. But do NuGene International Inc (OTCBB:NUGN) really need this sort of cash?
Well, they’ve been around for a while and they seem to have taken care of these steps. The skin care and beauty products hit the shelves long before NUGN went public and they were developed with the help of former model and entrepreneur Kathy Ireland. By the looks of things, the general public seems to like them. During the first quarter of this year, for example, NUGN logged about $481 thousand in revenues which, by OTC standards, is a relatively decent figure.
Their balance sheet isn’t too horrific, either. Sure, they’re not exactly swimming in cash, but the current assets outweigh the current liabilities by a factor of four, and there’s no nasty toxic debt to drown the stock in dilution.
All in all, while they probably won’t shoo you away if you offer a donation, NUGN can just about manage without an extra $2,289,000. And that presented a problem for the people behind Result Corporation who are, apparently, NUGN shareholders.
They had $2,289,000 and they desperately wanted to spend it. They decided that the best way to do it is to pump the stock.
$9,000 went to a promotional outfit called MicroCap Market Place and in exchange, its editor, Mike Casson, put together a 28-Page glossy brochure in which he explains how NUGN can reach more than $25 per share in twelve months’ time. Result Corporation then spent the rest of the money on printing the aforementioned brochure and then sending it out to investors who haven’t ordered it.
The results are quite remarkable. NUGN was already on a run when the pump started, but since its beginning, the stock has really been heating up. The last red session was logged almost two months ago and after a 4% jump, the ticker closed yesterday’s session at $3.37 per share. NUGN also racked up a dollar volume of more than $3.2 million and it seems to be just as active in early trading today. About ten minutes after the opening bell, it’s sitting at $3.40 – another 0.9% in the green.
A colossal amount of money is on the line and people are pretty happy because they are seeing their investments grow. Sadly, things tend to change rather quickly in Pennyland and, as we mentioned in our previous articles, there are certain shareholders who could potentially throw a massive spoke in NUGN‘s wheel.
The shareholders in question purchased 148,200 shares for $37,050 on March 7, 2014. A few weeks later, the company executed a 5 for 1 forward split which means that these shareholders returned their 148,200 pre-split shares and received 741,000 post-split ones. Fast forward a few more months, and you arrive at the name change and change in control. Another forward split was executed in January 2015, this time a 15.04 for 1, and the shareholders were once again forced to return their holdings. In exchange, they received 11,144,640 NUGN shares which, at yesterday’s close, cost about $37.5 million.
We’ll leave it up to you to decide whether there’s a connection between these shareholders and the ones who stand behind Result Corporation.