stock lost the next 44.39% on the market. Unlike the price, the traded volume of SAEI rose up by approximately 30 million shares, which is a clear sign for investors’ disappointment. The question is what has provoked it?Historical records show that last week SAEI hit a number of gains on the market due to the recent positive news by the company. This Monday, Supatcha officially reported the appointment of the new President and CEO Mr. Nikolae Yagodka and the election of the company’s directors. Besides, SAEI announced it has received a second unsolicited bid by JSC Rustamov Group for 100% of the issued and outstanding shares of the company for a price of USD$2.50. In addition, Supatcha reported they would be discussing their third quarter operations at the investor conference on December 20.[BANNER]
Instead of pushing up the stock price, it looks like the news made it go further down, or traders found it not enough to encourage them.
Supatcha Resources Inc. is a gold exploration company focused on acquiring and developing mineral properties in Ukraine. In end-November, SAEI was flying up due to the announced share repurchase program for its outstanding common shares for up to $3 million. However, the up move was cut off again. It seems that Supatcha’s market position is quite uncertain, considering the frequent ups and downs of its stock.
The most reasonable explanation on the unstable market position of SAEI must be its unstable financial condition. The company’s 10-Q report points out that it has a debenture loan of $5 million and the stockholders’ deficiency totals over $4.5 million. In the meantime, Supatcha has no revenues to sustain its operations and no sufficient cash to cover its liabilities, while the losses are expected to continue. These facts must be quite disappointing for the investors and they seem to be selling off SAIE shares intensively.
