Supatcha Resources Inc (OTC:SAEI) is rushing up again. The climb started last Monday when the stock gained over 116% on SAEI_Chart.pngthe market and this week the high trade continues. Yesterday, SAEI added the next 80.98% to its price and traded over 8 million shares on the market.

Looks like the climb was provoked by the latest news about Supatcha. Last Wednesday, SAEI announced that its Board of Directors has authorized a share repurchase program for up to $3 million of the company’s outstanding common shares.

According to the announcement, the program will be funded by Supatcha’s available cash and won’t impact the company’s ability to execute its growth plans.

Supatcha_logo.pngBeing published, the news captured traders’ interest and SAEI started the gain.[BANNER]

Supatcha Resources Inc. is a gold exploration company focused on acquiring and developing mineral properties in the Ukraine. The records show that the stock movement has had sharp ups and downs during the last months. In October, SAIE made another phenomenal gain, this time based on no news, though the stock fell down shortly. Since last week, the stock has been moving up again, though no one can say for how long.

According to the company’s last announcement, their repurchase program will be funded by Supatcha’s available cash, however, their financial report is not much promising. The company’s liabilities are higher than its total assets and its debenture loan totals over $5 million. The stockholders’ deficiency exceeds $309 thousand and it’s been constantly increasing, the net loss is also growing.

As a development stage company, Supatcha has not generated any revenues so far and it has incurred significant losses. Thus, the management team claims it needs additional financing to continue operation, otherwise it will cease activities until more cash is raised. In that case, how is the company supposed to fund its repurchase program?