A new Letter of Intent pushed the stock price of For The Earth Corp (PINK:FTEG) up 17.5% and triggered a new promotional wave for the forthcoming session. Yes, you got it right: an LOI can only have such an impact if it refers to a company that trades in pennystockland.
By the time yesterday’s trading session came to an end, FTEG stock had already gained 17.5% in value, eventually closing at $0.094 per share. The price surge occurred on a volume of 250 thousand, i.e slightly higher than the average daily trading volume.
Although no records took place yesterday, third parties embarked on an investors’ awareness program to give FTEG stock a further boost by pooling out at least $2,500. The campaign comes hard on the heels of a brand-new press release. According to the latter, FTEG had signed an LOI for the prospective acquisition of cat furniture manufacturer Miller’s Cats, LLC. The latter has been reported to have more than 25 years of experience in North America and will provide FTEG with the opportunity to penetrate the international pet supplies market.
For The Earth Corp. is an Arizona-based entity that specializes in offering eco-friendly and 100% non-toxic biodegradable household products. The company’s mid- and long-term plans include the introduction of both natural clean and health care products.
FTEG ceased filing with the SEC more than a year ago. Nevertheless, it has done its best to keep a relevant financial profile among investors. In this respect, the company recently issued a comprehensive report for the first calendar quarter of 2011. As of Mar. 31, 2011, the company’s unaudited balance sheet shows:
- zero cash;
- working capital deficit in excess of $1 million;
- $24 thousand in sales revenue and a net loss of $220 thousand.
As it seems, the company owes its CEO $210 thousand. Yet, presently, it is not clear how FTEG will manage to cover this loan, let alone its working capital gap.
