Carbon Natural Gas Company (OTC:CRBO) stock closed the last trading session at $0.6 for a share without a change in its price and a mediocre trading volume of about 15,800 shares. It looks like traders have not noticed that the company announced the closing of a $30 million private placement just a few days ago. A stock promoter will try to spread the news today.
As the chart shows, the recent events around CRBO have evoked barely any trading activity in the past month. Though, that may change very quickly during today’s trading session. Yesterday evening, our newsletters database detected a promotional e-mail on CRBO, recommending the stock as the next oil and gas play ready to grow, and of course, mentioning the latest press release of the company.
The promoter’s disclaimer says only that he is being compensated for featuring Carbon Natural Gas Company in the newsletters, though neither the exact art and amount of that compensation, nor the paying party has been given.
According to CRBO 10-Q report filed in May 2011, the company is an independent oil and gas company engaged in the exploration, development and production of natural gas in the United States. At the end of March 2011 the company had a working capital surplus and oil and gas properties with a net value of over $16 million, though its oil and gas revenue had decreased by 20% in the first three months of the year as compared to the same period last year.
Just recently the company increased the number of its authorized shares of common stock from 100,000,000 to 200,000,000, while last Thursday CRBO said that it has closed a private placement for proceeds of $30 million. The offering comprised of 44,444,444 shares of common stock at a price of $0.45 each and 100 shares of convertible preferred stock at a price of $100,000 each.
The preferred stock will be automatically converted into 22,222,222 shares of common stock as soon as the above mentioned increase in the authorized number of shares has been declared effective. Still no 8-k filing has occurred to confirm the transaction.
