Unfortunately this is the most likely possibility. Doesn't make a whole lot of sense though because they had opportunities to sell at much higher PPS a month or two ago.
Until they start reporting their financials, nobody will know for sure.
WORD TO THE WISE; If you been around the pennys long enough you know that the good company stocks will go down just before the news and turn up. In order to sell someone has to buy. Right now buyers are taking advantage of the impatient. Just as Warren Buffet hes said he has made money off the impatient many times.