lost 26.23% on the market, while its volume exceeded 1 million shares traded. A phenomenal value for the stock, as compared to its average volume of only 292 thousand shares.However, no particular reason for the unexpected gain can be found. There is no other news on Dynasty Energy, except the financial reports filed over the last few days, which however look disastrous.
According to the results, as of June 30 this year the company has no cash and cash equivalents and it has suffered expenses and a working capital deficit that DYER is unable to cover.[BANNER]
The company has accumulated losses of over $63 thousand and it needs additional sources of capital in order to continue operating.
In that case, what has provoked the unusual stock movement during the last week? Most probably some still unknown speculations on Dynasty Energy.
Last week, Mr. Shaoping Lu, President and Treasurer of the Company, resigned from his position after signing an Exchange Agreement with Fifth Season. Pursuant to it, DYER agreed to acquire all of the issued and outstanding capital stock of Fifth Season from the shareholders in exchange for approximately 391 million newly issued shares of the company’s common stock. Though, the closing of the transaction is expected to occur “on or before April 30, 2011”.
Meanwhile, the management of DYER claims that the company has no sufficient resources for the next twelve months and there is a substantial doubt about its ability to continue as a going concern.
