O/S maxed out? 85 million new shares?
The $671K debt was forgiven but it didn't bring new cash to the company. Did it? As of Q3 they had only $287K cash (10Q of Q3, same filing mentioned debt forgiveness also). Now $850K cash paid for Clean Fuel acquisition, stock jumped to $0.06 with that news and next day tanked back to $0.018. So What's going on?
In the news, I don't see that they mentioned how they got this cash. Debt financing? I doubt. So most probably it's the equity financing. So big question is, at what price the shares were issued (if so happened) to raise $850K? I believe as this stock is trading at $0.015 for long time, the new investors might have gotten the shares at $0.01/sh. That's means 85 million new shares and O/S is near the max - that's my understanding. market reaction for this stock is bearish , so I believe my understanding is correct. Get your own DD done.
PS: I am long and have enough patience to hold my shares at $0.024 while I am upgrading my DD.
