Aultra Gold, Inc. (OTCBB:AGDI) could possibly show off on the market today as the company’s news release is concurrently followed by a costly promotional campaign.
Aultra stated in a press release published yesterday that it will be acquiring 5 gold exploration permits in the Democratic Republic of Congo. Also, the company has entered into a definitive agreement with Shamika Resources from which the permits should be acquired.
The five exploration licenses will be paid for in a mix of shares and a $500 thousand promissory note in addition to the 2.5% net smelter return granted to Shamika. However, all the transactions actually took place within the same corporation.
Robert Vivian is currently the CEO of both Aultra and Shamika Resources, Inc.
The 8-k filling from March 2010 discloses that Shamika Gold, Inc. was acquired by Aultra for 25.5 million post-split shares and became a wholly owned subsidiary of the company. At the same time, the former holders of the Shamika shares acquired 51% of Aultra’s common stock, thus making this a reverse acquisition. [BANNER]
The third party SF Acquisitions has paid $24.5 thousand to at least one promoter to ensure the stock price reaction to the vaguely positive license exchange within the corporation. The news on the acquisition of licenses was published before the market opened yesterday, but received little reaction from traders.
Aultra stock has been trading in the $0.25-$0.50 range since mid-August. Despite the questionable financial position, the market cap remained rather high recently, which limits the space for further price run-ups.
The latest 10-Q filling for the period ending September 30, 2010 depicted only $500 thousand in long term capital and no liquid assets at all. The liabilities were slightly higher at $651 thousand. Aultra’s business operations generated a loss of nearly $13 thousand per quarter, which added to the accrued shareholder’s deficit, now calculated at over $550 thousand.
