Converted Organics Inc. (OTC:COIN) is engaged in the development and operation of clean technologies. It used to be a NASDAQ company, but as of yesterday it is traded on the OTCBB.
COIN’s last day on the NASDAQ was marked by a 190% surge on 46 million shares, about 50% of the outstanding shares of COIN, according to the latest 10-Q. Yesterday, however, the price dropped 31.72%. COIN closed at $0.099 on 10.6 million shares.
Before being delisted from the NASDAQ, COIN had been steadily losing its value for over a year. There are plenty of reasons for the devaluation.[BANNER]
While the company had operations and revenues, the result of its operations has been negative. During 2010 COIN burned through $16 million from operations alone; the losses from discontinued operations were staggering $34.6 million.
In reality, the delisting isn’t going to affect the operations of COIN directly. However, the fact of it alone makes COIN less appealing for long-term investors.
The situation with the company’s convertible debt doesn’t help much, either. Some iHub users suspect that at this point there is a massive sell off by people who hold converted shares and that’s the reason the price held yesterday.
At any rate, today’s session should be interesting as it isn’t clear how much longer COIN can hang around the $0.10 mark.
