Yesterday, Fero Industries Inc (OTC:FROI) stock surged 36.74% on a volume exceeding seven times the average for the company.
No news, lack of significant events and high speculative interest were the background of the trading session.
Being in the development stage for a decade now, this spring the company announced its new business intentions.
FROI’s previous business plan was to create a web portal and to serve as an “information provider for anyone worldwide who was looking to buy, sell or lease anything to do with the exploration and/or production of oil and gas.”
With no revenues and still developing its business, even in its last available financial report for the quarter ended this March, FROI still declares interest towards the oil and gas issues.
Despite the mentioned intention to jump over to a new field of business, the company states that will act as a brokerage/clearing house for oil and gas leases, royalty interests and a variety of drilling and production equipment employed by oil and gas exploration companies.
Since the end of this May, the iron developing Fero Industries Inc. started the manufacturing and distribution of a product known as Sucanon, which is a herbal remedy for Type II Diabetes. The company purchased the assets related to the above mentioned product for an aggregate price of $250,000 from the Canadian company Gvest, Inc.
After the successful deal with Gvest, Inc. and up to now, it is not known how FROI will start the above mentioned Sucanon production and distribution. In the latest financial report, FROI reports zero assets and total liabilities of less than $37 K. Since its inception almost ten years ago, FROI succeeded to obtain total cash from financing activities of less than 48 K and for the last nine months the company had not raised any funds. Only the net loss and the increase in accounts payable remain.
