Volatility and people making money out of it is the situation with the transdisciplinary biotechnology company Vivakor Inc.(OTC:VIVK). Everything lately can be described as announcement and reaction, week after week. The last one from Jan. 27th was quite inspiring as the volume of traded shares came to a never seen levels, together with the price that gained more than 200% during Thursday session. All this was sparkled by the announcement that Vivakor has secured $3 million in investment capital from a private investment group. This was on Thursday. On Friday on the other hand, having time to read the news a couple more times, investors started to understand what it really included. So, the price went down 30% from $0.009 to $0.006 per share.
Just to go a little bit further, assuming that traders had 2 more days this weekend for review of the facts, one can suggest what today session would look like. They should have already realized that a Letter of Intent for $3 million is not like a bank transfer in the company account for $3 million. It was a short, but beneficial period for the skilled speculative investors.
Now, as mentioned, main line of business for Vivakor Inc. is the development of products in the fields of electro-optics, molecular medicine, biological handling etc. The company claims to have some products of great potential, the balance sheet proves that their potential is yet to be discovered. There is another business that the company is engaged in that should not go overlooked as well. It is the issuing of shares on a regular basis. At present, the total number of shares outstanding is 139 million, while it was almost half of that just a year ago. There were people who had to be paid for consulting services, as well as salaries for the board of directors. So, issuing new shares was commonly referred to as the proper means to settle everything. Well, everything, except for investors who believed in the company and bought stock at $.0.60, and can sell it now at $0.006 per share. [BANNER]
While we are speaking about the board of directors and salaries, there are other peculiar things going on there if one takes a closer look at the last 10-Q report. Among other things, there is this part about the resignation of the former CEO of the company. Now, like most sub-penny stock enterprises, Vivakor also boasts to be a potential market leader. Yet, the company and the former CEO entered in an agreement, according to which the CEO purchased all proprietary rights in and title to the formula known as VivaBlend, including patents, trade names and patents. All this for the price of $1. Who could have thought that the technologies of the future can be so cheap if bought today. So, money really makes all the difference for Vivakor. It provokes market players to act, but cash figures also ought to provoke investors to think a lot before making any moves.
