Gaps are seen during normal trading. What you see in that 6 month chart is not a real gap in trading. It wasn't being traded then. It was just pulled down by owners to a level funding could be possible.
You see, if you have a startup and own most all the stock to start. You can choose the stock price at will. This is why you see darkside plays start up around 30 cents and fall huge & fast to double or triple zero price levels. When it was 30 cents only insiders and management held shares. And they decided our shares should be valued at 30 cents. This has nothing to do with true value of the company. Once investment is being discussed, reality must set in and true value determination comes to play.
I say my stock is worth 30 cents, but investors (venture capital firms) only want to pay .003, based on company assets, liabilities, business plan and possible success, ETC (the finacial standings). Bang, the price goes to .003
No way one can sell stock to an investor (big guy) if they have NO business rev's or margins that warrant 30 cents a share. So in order for funding to take place the Price choosen by the owners must come down. That pull down in price, is the charts way of telling one, funding is being discussed.
Gaps up or down prior to the stock having the liquidity of being traded means nothing. It means owners wanted a new share price for their stock. Volume and daily trading, shows the liquidity involved. Non or weak liquid stock gaps mean squate.
