“Ready, Willing and Able to provide this Loan” – this is how an 85% rise starts for Sungro Minerals Inc.(PINK:SUGO). Explosive volumes making up for a one-day reverse in the negative trend that has formed in the last few months. The question is – is this really the point of reverse, or just a one-day trading frenzy? 
February 17th, 2011 – almost 6 million shares exchange hands, the session closes at $0.9 per share. More than 70% increase in the stock price for the day. The previous session was a calm one, with modest trading activity and a slight change in the stock price.
June 14th, 2011 – 7.5 million shares exchange hands, the session closes at $0.037 per share. 85% increase in the stock price for the day. The previous session – a calm one, with modest trading activity and a slight change in the stock price.
Back in February, it was the famous “February Report” that sparkled the hype. Yesterday, it was the LOI for $15 million funding from Quest Capital Finance. So, what follows? Obviously, after the February hype a sharp decline followed. According to the latest quarterly statement, this financing could be a breath of fresh air, since this is what the 10-Q with an end date Feb 28 this year shows: [BANNER]
- $301 in cash;
- $1301 in total current assets;
- $1.1 million in total current liabilities;
- $8.5 million in accumulated deficit;
- $276k in net loss;
So, there are a few concerns at hand. How are operations to continue with that amount of cash at hand? This $15 million funding could really help, but as the press release mentions, a Letter of Interest is not like money in the bank. So, it is a final Letter of Intent that the company is looking for, which is yet to come. And there is one other fact that should not go overlooked – the price for securing this financing. Presumably, the company’s management should work for both developing and growing a business, as well as for the well-being of shareholders. Whether Sungro is on the right track for both goals is yet to see.
