The promoting e-mails have been sent during the weekend and they disseminated the announced after market close on Friday news that CLNO has the option to acquire a quarter of a biomass-to-energy project in California. The stock price could have the chance to explode today on the news and alerts, given the extremely low dollar volume that the stock usually gets. CLNO closed on Friday at $0.212 with a 0.95% share price increase from the previous close and a volume of 51,900 traded shares, the highest for the past six months.
Apart from the possible short-term appreciation, a market cap of over $22 million looks way too much for a company that has not had any kind of assets in the past three quarters ending October 2010. The $100,000 that CLNO will have to invest in its new project look almost unmanageable for its zero cash position, and the $45,000 invested by a third party in the stock’s promotions are also not a small amount of cash.
But maybe Cleantech Transit’s appointed just last Friday new CEO Alex Holtermann will actually be able to gain investor attention and secure the needed cash, even solely out of his personal motivation. Mr. Holtermann has seventeen years of experience in marketing and public relations for junior and senior companies, including the introduction of such companies to financial institutions and investors. The arrangements for his compensation are still pending. According to the 8-k, they are ” expected to be commensurate with the available resources of the Company at its current development stage”, which resources are as already mentioned yet to start building up.
Since inception in 2006 up to early 2010 the company was engaged in the exploration of mineral properties, but has never had any significant operations, and respectively its current shareholders have not seen much of value growth of their investment. As of this January, CLNO has almost 105 million shares outstanding (authorized are 600 million), more than half of these being held by two large beneficial shareholders.
