rumors among traders is the reason for the up move, it is just about to be seen.The latest announcement by Manas came up last Friday. According to it, the company has terminated its agreement for part-time services with Yaroslav Bandurak, Chief Technical Officer of MNAP, in order to require a full-time CTO for their operations in Mongolia. With the news being released, Manas shares added approximately 12% to their market price and the traded volume of the company rose over 787 thousand for a day. Probably, a full-time CTO looks good for MNAP’s business, however, is it enough for a stock price jump?
An open-discussion on investorshub.com message board suggested there was another reason for the up move. It stated that the shares of Petromanas Energy Inc, the largest shareholder of Manas, have begun to breakout on large volume and MNAP was to follow. According to the investors’ discussion, Manas’ stake in Petromanas was now worth over $96 million, or 0.72 per share, which must be a very good reason for the stock climb. Still, no final conclusions can be made at this point.
Manas Petroleum is an international oil and gas company with primary focus on exploration and development in South-Eastern Europe, Central Asia and Mongolia. In December, the company reported it has issued 2 million shares of its common stock to a consultant in consideration for his consulting services. However, despite the recent agreements Manas has entered into, its financial condition doesn’t look so bright.[BANNER]
As a development-stage company it has registered no revenues, however, it has significant losses to cover. In its 10-Q, the management of MNAP states that based on their business plan for the next 12 months the company will need about $8,2 million to fund its operations, though they don’t expect to need the additional funding before Oct 2011. However, in order to continue operations beyond October the team will still require further funds, “raised through additional equity and/or debt financing” that may be dilutive to shareholders.
