Assuranceamerica Corp (PINK:ASAM) is moving up these days. The climb started on Friday and it is still on this week. 
Yesterday, ASAM soared the next 8.70% on the market and its traded volume substantially rose up.
The big question is what is the reason for the sudden gain? At this point, the answer remains unknown.
Historical records show that Assuranceamerica has not released any news on its business for a long period of time, so no one is informed about the company’s current operations. The only data available turns out to be the financial results of ASAM, which came up in November.
According to it, as of September 30, cash position of Assuranceamerica looked strong, however, the accumulated deficit got 3 times higher as compared to the previous period. Besides, the company’s liabilities remained uncovered.
Last month, ASAM announced that it was intending to reduce the number of the record holders of its common stock to fewer than 300 and suspend its duty to file periodic reports and other information with the SEC. This is to eliminate the significant expense required to comply with the reporting and related requirements.
The transaction itself will consist of a reverse split of the company’s common stock, whereby each 10,000 outstanding shares of common stock will be converted into one whole share. Additionally, it will be followed by a forward stock split for those stockholders who hold at least one share of ASAM common stock after the reverse stock split.
Apparently, Assuranceamerica gives its best to eliminate its expenses. However, what is more interesting about the company is that it relies mostly on a Loan Agreement, accompanied by premiums, commissions and fee income.
