King Resources, Inc. (PINK:KING) crashed for the umpteenth time yesterday after the company tried to impress investors by introducing another merger candidate for a graphite mining project. The accompanying promotion also failed to live up to expectations.
KING closed trade at $0.0013, down $0.0005, or 27.78% from its previous close on Apr. 5 when the company disclosed it had brought the merger with Grid Grabber. More than 93 million shares of common KING stock changed hands setting a new six-month record, partially due to the paid promotion launched on Sunday evening.
Unlike yesterday’s news, the Apr. 5 announcement brought KING stock a 20% increase in value on a volume of 51 million shares.
Although KING recently revealed not to have any intention of performing a reverse stock split, this does not necessarily mean that such a scenario is completely out of question. At present, the company’s shares are traded dangerously close to the triple zero zone. So, it could only take a few more slumps for KING stock to shrink to a few pips, which would definitely pose the risk of a reverse stock split.
KING’s annual report for the 2011 fiscal year shows that the company has no assets whatsoever, short-term liabilities of $105 thousand, zero sales and a net loss of $31 thousand. What is more, KING’s accumulated deficit so far amounts to $17.8 million. Is the company worth such an investment? You decide for yourselves.
