price, and yesterday, it fell even deeper, losing approximately 27% on the market.Unlike the price fall, trading volume of LBSR reached the untypical high value of over 19 million shares, which provoked the attention.
The latest news on Liberty Star came up three days ago, when the company announced it has settled a lawsuit filed last month, by Platinum Long Term Growth and Alpha Capital Anstalt. The companies entered into an agreement, according to which LBSR was to issue them approximately 442 million shares of its stock.
Liberty Star was satisfied with the agreement and stated that “While dilutive, the settlement does not create a drain on our cash position.” However, the company keeps losing its position on the market.[BANNER]
Liberty Star Uranium & Metals Corp. is an exploration-stage company engaged in the acquisition and exploration of mineral properties in the states of Arizona and Alaska. Historically, the company has been a low-trade till July, this year, when the stock started to climb. At end-August, its price was 3 times higher than its current value. However, it entered a downtrend shortly, and it still moves down, trading on huge volume.
Not surprisingly, the quarterly results of LBSR are discouraging. As a development stage company, it has generated neither revenue, nor gross profit, and has suffered an operating loss in thousands.
The company has almost no cash and cash equivalents, while its liabilities total over $3 thousand. By end-July, this year, LBSR had a negative working capital of over $3 million and the company has no cash to cover it.
Based on these financials, investors should keep in mind that Liberty Star has set a going concern on its ability to continue operations.
