All of a sudden, Global Clean Energy Holdings, Inc. (PINK:GCEH) hit the heavy gain. Yesterday, the stock soared 58% and 
managed to trade over 7 million shares on the market. The only issue here is that the reason for the massive trade is still unknown.
According to the records, Global Clean Energy has not released any news lately and no one is familiar with its current activities. Though, the stock is climbing up at top speed and everyone is curious to see its next move.
Traders on the investorshub.com message board also wonder what’s happening with GCEH and a few hypothesis came up these days. One of these was related to the company’s shareholders’ meeting, when the team of Global Clean stated that they have approved a State of Incorporation change from Utah to Delaware, but decided to wait on a reverse stock split until its other business efforts warranted a reduction in the number of outstanding shares.
Another hypothesis laid on the accomplished issues during the past year, pointed out by Global Clean at the shareholders’ meeting. Among these were increased full-time employees, new markets investment, acquired properties, etc.
Apparently, many factors could be related to GCEH price jump, however, at this point no one can be sure about the actual reason for the gain. In any case, there is a possibility for the company to prepare a press release for traders and satisfy their curiosity.
GCEH is a company with international capabilities in eco-friendly biofuel feedstock research, and sustainable agriculture cultivation, production, and distribution. At first sight, the company’s financials don’t look bad, however, at closer look the situation is quite different.
According to its 10-Q report, GCEH has more assets than liabilities in its balance, though the long-term liabilities are not taken into account. Besides, the company’s accumulated deficit is over $27 million and the revenues cannot cover it.[BANNER]
Management team state that because of their negative working capital position, they may need to raise funds in the future in order to continue to operate. However, presently the team does not have any available credit, bank financing or other external sources of liquidity and they do not expect to have sufficient cash on hand to fund their projected working capital needs for the next twelve months.
Another problem is that if GCEH issues additional equity or debt securities, the stockholders may experience additional dilution, or the new equity securities may have rights, preferences or privileges senior to those of existing holders of common stock. In this case, the company should either find a way to get profitable, or scale back its operations.
