It's pretty common among penny stocks for the price per share (PPS) to go lower just after a reverse merger......
What is really a much more telling story is how the accumulation\distribution line (top green line) continues to climb showing AERO Performance Products is under heavy accumulation since that magical press release back on May 2, 2008 announcing the Termination of AERO's Agreement With Javelin Advisory Group.
Also notice on the chart the two horizontal blue lines which is where the average price per share seems to fall and how a simple Press Release in January where Aero Performance Products, Inc. Announces the Agreement to Acquire Jones Exhaust Products, Inc.
I think the most significant point to note is how a simple press release had caused AERO's price per share to jump up 900% from where it is today. I believe it to be very telling the stress importance of that bounce because for a company with with 2.4 billion shares outstanding to bounce that fast and that quickly on such low volume signifies that AERO shares are naked shorted to the hilt.
I really can't wait to see the announcement when AERO confirms receipt of the funding from the Investment Banker clearing the way for AERO to acquire Jones Exhaust. When that happens, the price per share will blow right through 900% gains and those two blue lines on the chart!
Tic Toc
Now tell us EDD, how is paying off current debt with shares troublesome? I see share increasing to pay down debt is a wonderful thing because the ongoing interest rates are the real problem. Paper debt paid with share debt is a wash!
Speaking of decreasing debt, I will also be excited to see what happens to the share price when future 10Q's and K's come out showing the combined operations of both AERO and Jones and how they have significantly cleaned up operations over the past year to achieve the loan.
Besides have a faulty exit strategy from the lack of real shares available, this is about to turn really, really nasty for naked shorters!