No revenues, hardly any cash, yet the expansion is underway for Lightlake Therapeutics (OTC:LLTP). An expansion that results in a trading frenzy. The interesting part – less than 6k shares traded one day, more than 16 million the next. Such is the press release power of this company. Even promoters could envy such results. Yet, the price did not really accumulate value. 
It was a modest increase of 4% for the session yesterday. Somewhat strange, given the all-time high for the number of traded shares in the history of this enterprise. As mentioned, more than 16 million exchanged hands, but the session closed at $0.88 per share. Two announcements including the same information set off the hype. Yet, given the trading history of this stock, it is unlikely that this would be a price level that would remain for the next sessions to come.
All in all, there seems to be little interest in the stock as the trading volumes in May would rarely exceed 20k. In terms, there is a possibility that it is not only the announcements that sparkled the trading boom. Besides, while press releases might have an effect on the stock, it is financial results that could make up for this effect to last over time. In this case, however, balance sheets are not much a source for optimism. There are two quarterly statements as the last one covers the period ending on Jan.31st and includes the following:
- $1,118 in total current assets(cash only); [BANNER]
- $652k in current liabilities;
- $3.3 million in accumulated deficit;
- no revenues;
- $1.2 million net loss;
The 10-Q with an end date Oct.31st is no different. One question immediately comes to mind – how does this company operate and expand the focus of operations when there is no money to sustain operations. One way is through the sale of common stock, which might not be in the best interest of current shareholders. At least, the general performance of this stock is not too bad. It has been one of increase in the last few month. However, the overall uncertainty that goes together with Lightlake makes it hard to estimate what the price levels would be even in a month from now.
