Bank, investment firm.... not invest in penny stock!If management are looking for serious investors, none will do it on stock under $1 mark. The problems is retail investors, friends and market's patience has dried up significantly.
The news late Friday night proves how incapable they are of finding financing. The last investors have provided money to purchase equipment and start production since the two last years. Now that they are producing at 25% of their capacity awaiting repairs that should increase production to 100%, the question remains.
WHERE ARE THE SELL CONTRACTS?
After consolidation, the price per share will not stay at the current level for sure. Either they have created more space at the bottom to convince investors to put money in when the free fall decline will continu or they announce a sale contract and it goes up above $1. Above that mark, banks, investment firms and big shots will be interested in putting in large amounts of money. Simple as that in my opinion.
A word of advice for Mr. Mallory, the future of this company is at a crossroads. If you think consolidation is going to help you find financing without seeing future sales prospects, you are going to hit a wall.
Buying stocks no matter how much it goes down is not interesting for anyone tu put a single penny because your production is worth absolutely nothing. It will be money thrown down the toilet.
FOCUS ON YOUR SALE and it's urgent.
If you do so and get a deal, your financing issues will fixed by itself specially that you already have a deal on a table that will expire on november with warrant a a price of $0.18 or $1.80 afer consolidation.