Another classic scenario is up for Onteco Corporation (PINK:ONTC), f/k/a InfoSpi Inc. Third parties have joined forces again by launching a new promotional program that comes hard on the heels of a brand-new press release.
The latter popped up yesterday, pushing up ONTC stock 84% to its early-March level of $0.034 per share. The surge was accompanied by an impressive spike in the volume as more than 1.7 million shares changed hands, tripling the daily average volume.
What triggered the latest advertising campaign in favour of ONTC was nothing else but a forward-looking statement. According to the corresponding press release, the company’s recently acquired subsidiary, NexPhase Lighting, Inc., was to take part in a Philadelphian Lightfair international show in order to display a final product currently known as ‘NexSense 2×2 LED troffer.’
As it is, Lightfair International describes itself as “the world’s largest architectural and commercial lighting trade show and conference” and pretends to draw an average of 20 thousand visitors a year. If NexPhase succeeds in attracting their attention on May 17, ONTC might get much more exposure on the stock market.
ONTC’s latest 10-Q report covers the quarter ended Sep. 30, 2010. As of that date, its balance sheet shows:
- $4,751 in cash;
- negative working capital to the amount of $425 thousand;
- a quarterly net loss in excess of $70 thousand;
So far, the company has issued 92% of its authorized stock of 75 million shares. Therefore, unless ONTC has a commercially viable product that is ready to penetrate the market, it will either have to rely on very slim financing, or change its articles of incorporation in order to increase the amount of its A/S.
