Lexington Energy Services, Inc. (PINK:LXES) apparently had a push from a paid promoter last Friday, and it seems the pump is still going, although it’s effect may be already spent.
On Friday LXES traded more actively than usual, and for a limited time traded above 9 cents, but most of the action ended by noon. At the end of the session, after nearly 2.4 million shares had changed hands, LXES closed up just 7.58% at $0.071.[BANNER]
LXES doesn’t have anything to brag about. The paid pumps focus on some news released by the company on Thursday and Friday. A non-controlling third party shareholder has paid $55 thousand for the pump.
After a long silence, on Apr. 19 LXES published a corporate update saying a team of “established professionals” had been assembled to evaluate the economic viability and feasibility of numerous claims.
The second announcement was published Friday and concerned a $100 thousand financing through convertible debenture.
A hundred thousand is a ridiculously small sum for an exploration company, but it is 10 thousand times more than what LXES reported as total current assets at Feb. 29.
In addition to the poor financial situation at LXES, the new financing is dilutive to existing shareholders and the debenture is convertible at $0.06 which makes Friday’s close seem a bit high.
There are a lot of factors working against the paid pump, but on the Pink tier traders are often more interested in the pump campaign than in the company or its operations.
