Gold Bag Inc (OTC:GBGI) climbs up again. Yesterday, the stock closed at $0.56 per share and its traded volume got 
approximately 144 thousand shares for the day.
The historical data shows that the latest news about Gold Bag dates from April 1, when Ubika Research has released an initiation report on the company. The research report was called “Focused on unlocking the value in undervalued gold assets” and was published online. Being published, the report pushed up GBGI stock a bit higher, however, the climb didn’t last much long. It is interesting how long the current up move will continue this time.
Just a day before the recent research came up, Gold Bag released its last news so far, reporting that they were seeking a second listing on either the TSX Venture Exchange or a recognized European exchange. Mr. Grant White, CEO of GBGI, stated that by obtaining a second listing, they expected to have greater access to capital, broader global investor interest and improved trading liquidity. Though, no further details on the issue have been revealed by this moment.
Gold Bag, Inc, operating as Focus Gold Corp, is a company focused on acquiring and developing gold mining properties primarily in America. Up to date, there is no news on the company’s activities, thus no one is familiar with its current operations. Though, the stock still holds the up move, so probably something new is just about to be revealed or the climb will be broken.
According to its quarterly report, as of November 30, 2010 Gold Bag had more assets than liabilities on its balance sheet, however, the deficit accumulated during the development stage period has significantly increased. While at the same time, the company’s revenues remained zero.[BANNER]
In the quarter ended Nov 30, GBGI has raised $910,000 in additional funds through a private equity investment in order to begin its business operations. However, the management expects to incur more losses in the future and the operations are still in process. Besides, the 10-Q states that the financial statements have been prepared in conformity with generally accepted accounting principles in the US, which contemplates continuation of the company as a going concern.
In other words, unless Gold Bag finds a way to get profitable, the company may have to cease operations and investors may lose their investment.
