Vega Biofuels Inc (OTCMKTS:VGPR) Smothered

It’s been a while since we last wrote about Vega Biofuels Inc (OTCMKTS:VGPR). In fact, it’s been more than a year and four months. So, let’s see how the company and its stock have been getting on.

In a word, not brilliantly. Up until about a month ago, the ticker was stuck to the very bottom of the chart and it was having serious difficulties hauling itself away from it. The management team decided to give it a helping hand and on October 16, they effected the sixth reverse split in VGPR‘s history.

Immediately after it, the ticker found itself hovering around the $0.02 mark and at first, it showed some serious determination to remain there. Soon, however, the determination was gone and despite the absolutely pitiful volumes, VGPR was sliding towards the bottom. Yesterday, the pumpers came along, but instead of helping, they completely smashed the stock to pieces.

Thanks to Damn Good Penny Picks and the rest of the newsletters owned by Stellar Media Group (who pocketed $14 thousand), VGPR dropped below the $0.01 mark for the first time since the reverse split. After losing more than 28% of its value, it stopped at $0.0075 per share.

So, the stock isn’t doing very well and unfortunately, the same can also be said about the company. On June 30 VGPR‘s balance sheet looked like this:

  • cash: $31,500
  • current assets: $66,500
  • current liabilities: $142,677
  • six-month revenues: $23,435
  • six-month net loss: $178,230

Some of you will probably point out that the figures above are quite old now and you’d be right, they are more than four and a half months old. Sadly, they are the most recent ones we’ve got.

The company failed to publish its report for the third quarter on time and it also forgot to file a notification of late filing which means that VGPR‘s company profile is now stamped with a limited information sign.

That’s not something people want to see, especially when they’re looking into VGPR. As we’ve mentioned numerous times on these pages, some of the company’s major problems have always revolved around the dilution it was experiencing and the fact that nobody knew who exactly was receiving shares and at what cost. The lack of up-to-date reports isn’t doing much to change that.

Speaking of dilution, the management team tried to convince everybody that they’ll finally be able to rein it in by reducing the number of authorized shares along with the reverse split. Some people probably thought that this is a great move on the company’s part, but they might have overlooked something – the number of issued and outstanding shares was slashed by a factor of 300 while the A/S count only shrunk by a factor of 6. In other words, there’s still plenty of room for stock printing.

You may also like...