Yesterday, Mindesta, Inc. (OTC:MDST) sank like a brick, bringing a record-breaking volume with it.
Indeed, what happened during the latest trading session with MDST stock will certainly be remembered for quite a long time. Within the seven-hour trading period, MDST slumped by a staggering 86%. As a result, not only did it lose its dollar status, but also reached a 15-month low of $0.22 per share.
So, how did MDST lose nearly $1 dollar in value? The last time the company issued a press release was three days ago when it revealed that FINRA had set Jan. 26 as the ex-dividend date for the previously-announced distribution of a majority of the company’s shares of common stock of Northern Graphite Corporation to holders of Company common stock (the “Distribution”). As a result, MDST shifted a three-year high of 580 thousand shares.
Based in Ontario, Canada, Mindesta, Inc. was incorporated in 1996 in Delaware, USA. Being an exploration-stage company, MDST occupies the gold & silver ore industry. Currently, the company’s only asset is a 26% stake in the above mentioned Northern Graphite Corporation. The latter in turn has a controlling interest in mineral claims, as well as a mining lease in the so called Bissett Creek Property located about 180 miles northeast of Toronto.
MDST finished Q3 of 2011 with:
- cash reserves of $0.7 million;
- net working capital of $0.4 million;
- net loss of $107K;
- nine-month stock-based compensation of $155 thousand.
