515.38% on the market. Along with the price, its traded volume also rose up to exceed 3 million shares.The gain immediately woke up investors searching for an explanation of the high trade.
In the beginning of this month, the company announced the extension of its purchase agreement with Colorado Civil Construction Company. Besides, GeoBio completed a 5,500:1 reverse recapitalization of its common stock and published an update on its corporate capital restructuring and business plan. Yesterday, the company reported it was satisfied with its progress and convinced that the recapitalization was “integral to its strategic growth and financing plans”.
The current issued and outstanding common stock following the recapitalization is approximately 2.4 million shares. However, GeoBio announced they were not aware of any material operating event behind the increased market activity on the company’s shares.[BANNER]
Apart from the official announcement, a big discussion on the unusual high trade appeared on investorshub.com message board, though none of the rumors was confirmed. Looks like the actual explanation is about to come up.
GeoBio Energy is a development-stage company whose business model emphasizes the acquisition and operation of existing companies in the oil and gas services and energy industry. Historically, the stock has had frequent ups and downs and its future price could hardly be predicted.
According to its last quarterly report, GeoBio has no revenues, though the company’s operating loss has been increasing and its liabilities are about 17 times higher that the total assets. As of June 30, GeoBio has “a deficit accumulated during the development stage of approximately $24.4 million, negative cash flows from operations since inception and expect to incur additional losses in the future” and the company seeks for additional financing for its operations.
Presently, the management relies on implementing their new business plan, though the results are yet to be seen.
