Yesterday, the share price of GRYO soared 90% and closed the session at $0.19 on a the record trading volume of 28.24 million shares. All points that the incredible action happened on the still unconfirmed through an SEC filing press release from Tuesday late afternoon. The company announced to have acquired the exploration rights to 11 mineral properties in south-eastern Arizona, USA.
It looks like after the company sold its stake in the Turkish corporation APM Madencilik Ltd. (APM) that held certain mineral claims, Gryphon now aims at starting a new exploration program focused on lithium. It is not a surprise that the market got excited, but the weak cash position and no revenue sources of Gryphon at the end of this June suggest that the company will have to start a capital raising program first of all before it can do any other kinds of programs.
According to the financial report of the company, it had end-June around $100,000 in cash and liabilities of over $214,000, mostly in loans from shareholders. Further, GRYO got no cash from the sale of APM. Under the agreement, its the 99% interest in APM was transmitted to the purchaser only in consideration of the purchaser assuming certain liabilities owed by APM to third parties. GRYO also forgave some intercompany balances owed by APM to the company.
Thus, the strategic management decision to change the focus could be a good one, considering the increasing demand for lithium. The problem is though, along with the lack of resources, that it might take a long time before any lithium is drilled and sold.
