Yesterday the stock price of Baltia Air Lines Inc (OTCMKTS:BLTA) witnessed a sharp drop closing 16.41% in the red at $0.0109 per share. The traded volume in the session on the other hand was huge as investors exchanged more than 52 million shares which is the biggest daily volume recorded by BLTA stock since the start of the year.
There is a lot more optimism surrounding Baltia Air Lines about posting a new press release on the successful passing of the much awaited mini-evacuation test. However, it can add to disappointments as the rumors linked to mini-evacuation test have been floating in the market from past few months. As of now, there is no update from the company on the matter, which indicates that no progress has been made on the project. The last press release published by Baltia Air Lines came on February 6, 2015 when it said that it doubled the cockpit crews.
Baltia Air Lines problem doesn’t end with absence of updates. The problem is even if the results are positive of the test; the hype would be short-lived as it has got dismal financials. IN the first three quarters of 2014, it raised cash of $7.1 million which was nowhere reflected in the last report. The company recorded cash and total current assets of just $29,000. It indicates that all the raised funds have already been deployed by the company. There was no revenue recorded and moreover the quarterly net loss was $5.4 million. The total current liabilities came at $2.7million.
It is evident that there are several red flags associated with Baltia Air lines. The company reported that count of its outstanding shares surged from 3.3 billion to 4.93 billion in first three quarters of 2014. As of February 17, the figure was 5.7 billion.