After a steep downtrend in the last six of months Aultra Gold Inc (OTC:SHMX) has reached the threshold of the triple zero pennies.
In June last year, SHMX shares were sold at $0.5 each and now with the advent of 2012 the stock is flirting with the lower sub-penny border.
The closing bell on Thursday last week marked the stock’s descent to the lowest penny stock group after SHMX breached the border at $0.001 and finished at $0.0009 per share. On the following session SHMX went further down to $0.0008.
Last month while the value of SHMX stock was melting down there was a noticeable increase in trading volume. Thus, in December the stock was predominantly traded in volumes exceeding the daily average.
The peak volume was reached on December 23 when more than 24 million shares changed hands. In the days that followed trading volume remained higher than 10 million whereas the daily average is 3 million.
Apparently SMHX is suffering from the toxic financing of its operations. The cash flow section of the last 10-Q report shows that SMHX is procuring cash trough financing activities which is subsequently burnt in their operating activities.
For example during the nine months ended September 30, 2011 the company has procured $300 thousand through sale of common stock under subscription agreement and another $260 thousand through convertible notes.
