Southridge Enterprises Inc. (PINK:SRGE) Lied about Joint Venture

96SRGE_chart.pngIt’s no secret that trading on the OTC Markets is risky, and a lot of the promises made by companies on this tier are never realized, but flat-out lies are not such a common thing. Nevertheless it looks like that’s what Southridge Enterprises Inc. (PINK:SRGE) has done.

I’ve been covering SRGE for a while, and the credibility of the claims the company makes is the most common issue. Recently, the company has been talking about a deal with a major NYSE-listed company, and yesterday it announced a joint venture (JV) with Kinross Gold Corporation (NYSE:KGC).

The news was gobbled up by the believers and SRGE nearly doubled in price. The ecstasy wasn’t mean to last. KGC denied having entered into a JV, and added the company wasn’t actively pursuing any such agreement at this time. SRGE crashed and closed down 37.5%. The volume reached almost 420 million shares – nearly twice what the float is supposed to be.

KGC.jpgSo far today, SRGE is trading higher than yesterday’s close, but it will be hard to recover from such a blow. That’s assuming the SEC won’t take any action on the matter.

SRGE hasn’t reacted so far. It will be interesting to see what explanation they will come up with. Some believe that the press release wasn’t issued by SRGE, but that is highly unlikely, since it was covered by MobilePressWire who have supposedly been compensated $4 thousand by the company. I’ve been called names over my coverage of SRGE, but yesterday’s fiasco makes it all worthwhile.

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