The promotions came right on time before CMGR stock hits the bottom and they were again made without any disclosed compensation. This time the much lower share price attracted a much larger number of traders. The trading volume of more than 900 million shares was the highest ever for CMGR and the price surged 400% up to close at $0.0015. Also yesterday, another deal for some domestic media rights was announced, and that surge of the share price looks almost comparable to that in September, which also happened on a similar press release.
This week, the company notified the SEC that the third quarter results will be filed with a delay and for now it is not known if something has changed about Camelot Entertainment disastrous financial condition from end-June. Though the company is working hard this month to improve its balance sheet, it seems that there is not much hope that this time the higher price can hold.
Since the end of October, some of the lenders decided to convert the amounts owed to them into shares of common stock. By November 5, 2010, 83 million shares were issued for the retirement of that debts. Camelot Entertainment plans to retire the major part of it liabilities, hoping that the number of shares that will have to be issued will decline as the company’s revenues grow. As seen on the stock chart, investors were not of the opinion that the plan could work, especially as the management looks also rather skeptical.
At the annual meeting in December, the stockholders will be asked to approve the issuance and sale of more common and preferred stock for cash. The amount that management plans to raise is $10 million and the retirement of debt is mentioned on the first place as a possible use of the proceeds.
