These are some of the events around cMoney Inc. (PINK:CMEY). Yesterday the price dropped an amazing 78.57% down, closing at $0.015 on an all-time high volume of approximately 14.4 million shares.
The crash may have surprised some traders, since the PR that seems to have caused it stated that CMEY had appointed a new accounting team to help with the preparation of the current financial statements. The history of the company is a very probable reason for such an adverse market reaction.
About this time last year, the company announced it had succeeded in raising $15 million from Kodiak Capital Group. In July, CMEY said it had entered into a financing agreement with AGS Capital Group, LLC, which constituted a commitment for a $100 million in funding from AGS.
Later it turned out that the SEC was investigating the company. The investigation was connected with a possible relationship between CMEY and convicted financial felon Dennis Pharris, the father of Jennifer Pharis, CMEY’s founder and former CEO. Larry Wilson, a board member and interim CEO until the recent changes, said at the time the investigation was related to Dennis Pharris and didn’t involve the company or Jennifer Pharris.
Although the company has had some serious problems in the past, the most current developments are not negative. Before the aforementioned PR about the company’s financial statements, there was an announcement from Jan. 20 that introduced the new management of CMEY. The current management may turn things around for the company.
For the time being, however, there is too little information about the current situation of the company and its operations, if there are any. It is also possible yesterday’s crash was caused by market makers.
