Yesterday, BPAC has gained a lot of buying pressure already before the market opened, and entered the session with a gap up. The share price closed then at $0.17, 21.43% higher than the previous day, and this time the promoters achieved an even higher trading volume for the illiquid stock than their forerunners did in the middle of this January. After the peaks reached by the share price at that time, the stock has been climbing down all the year round, but things changed these days.
According to the promotional disclosures, two third parties have financed the second for this year promotional wave, the trading alerts being started already on Monday. At least $65,000 have been spent on the favorable coverage of BPAC, leading to 4.07 million share turnover during the day, a value 58 times the average trading volume of the shares.
At the same time, the latest financial results of BioPack Environmental and especially their latest SEC filing from last Thursday, could hardly suggest that such a run-up on the shares could take place. The company invited its shareholders to a special meeting, on which they will be asked to approve the sale of substantially all the assets the company has. For sale are all the shares of the BioPack subsidiaries, which are responsible for all BPAC manufacturing facilities and equipment in China. According to the filed document, without that sale the company is unlikely to continue as a going concern, and after the sale management plans to concentrate solely on the promoting and selling of the biodegradable food container and packaging products.
A purchaser has also been found: a company incorporated in the Virgin Islands. Together with buying all the manufacturing equipment, the purchaser has also agreed on a distribution contract, which grants BioPack the right to sell their products in Europe, North America, Australia, Africa, South America and Hong Kong for a period of 12 months.
