Last three trading session have not been good for Minerco Resources Inc (OTCMKTS:MINE). In last trading session, MINE share prices ended up declining 13.56% at a massive volume of 51.69 million. The things have not improved for the company since last one week.
The press release
As per the last press release, Minerco wholly owned subsidiary has purchased an additional stake of 21% in Avanzar Sales and Distribution, LLC. After the last purchase, the stake has increased to 51%. The CEO Scott Vanis said that the latest move is an important part of the strategic plan to create investor value through buying cash flowing assets.
The press release of Minerco failed to instill any optimism among the investors. The real concern lingering was the company need to make a structured payment of $400,000 throughout 2015 to complete the acquisition. It implies that the company’s existing liabilities of $3.4 million would expand even further. It is evident that it would take many more measures for the company to get back into the good books of the investors.
Minerco Resources Inc (OTCMKTS:MINE) was unable to find some support to continue its next flight as its second-quarter results and plans to list on a reputed exchange failed to excite the investors. The company’s CEO, V.Scott Vanis stated in a letter to shareholders that Minerco has attained fast growth during 2Q2015.
Vanis’ letter stated that Minerco Resources posted revenues of $740,000 in 2Q against $502,000 in 1Q2015. He stated that the revenue surged 47% quarter-over-quarter. Moreover, the assets of the company surged by 270% from $1.011 million to $2.72 million between July 2014 and January 15. The increase in assets can be attributed to the acquisition of Avanzar. The liabilities during the second quarter remained constant, showing a little change from $4.91 million in the 1Q to $4.94 million in the reported quarter.