Six months ago, China Agritech Inc (PINK:CAGC) was officially delisted from the Nasdaq effective from May 20. CAGC stock eventually went into a steep downward spiral, crashing from $7.83 in early-March to $0.67 in late-November, only to strike back during the latest trading session on Dec. 1.
Yesterday, the company, which has now been relegated to the caveat emptor marketplace, surged by a staggering 161% to a 20-week high of $1.75 per share. What is more, a total of 273,655 shares changed hands, which is also a six-month record for the company. Was this a one-off exception or the beginning of a new era for CAGC?
Needless to say, the current hype about CAGC on the market was entirely based upon the official press release which popped up yesterday, as well. The stockholder update provided extensive coverage on the company’s recent issues. In addition, the company was also pleased to announce the end of the investigation carried out by the Special Committee with regard to the reasons which led to the Company’s delisting. While the report practically considered the case closed, it has yet to be seen whether the company will perform the steps necessary to resume trading on the Nasdaq in due course.
Now that the investigation is over, the first task for management is to provide investors with a full-blown 10-K for the 2010 fiscal year. Because, the latest available 10-Q form covers the third calendar quarter of 2010. As of Sep. 30, 2010, CAGC’s fiscal condition was determined by:
- cash reserves in excess of $45M;
- working capital surplus of $135M;
- net revenue of $23.9M and net income of $1.8M.
An audited 10-K for 2010 will definitely allow for official verification of all transactions and balances recorded in it.
