thousand shares for the day. That’s an amazing value for the stock as compared to its average volume of only 67 thousand shares. Looks like something strange is going on with Mercer Corporation and the investors have started to sell intensively.Apparently, the unusually high volume is due to the recent promotions of MRGP. According to the records, yesterday Mercer was promoted by 5 companies, though the stock price fell down heavily.[BANNER]
Apart from the promotions, MRGP published a press release on the completion of its soil geochemical sampling program and announced its excitement on the results. The company projected another drill program in October, however it couldn’t succeed to provoke the traders’ interest.
Mercer Gold Corporation is focused on gold exploration and resource definition in Colombia. The company used to trade lower at the beginning of this year, though in March the price climbed up to over $1.00 per share. However, the stock moved down again after that.
The financial results of MRGP show that the company has not generated any revenues during the three months ended May this year and has incurred general and administrative expenses of over $2 million. The company still has more assets than liabilities available, though it hasn’t generated positive cash flows from operating activities and suffered a net loss of over $1 million.
According to its financial report, MRGP has financed its operations mainly from advancements or issuance of equity and debt instruments. Based on its latest results, the company will need approximately $1 to $2 million to pursue its business plan during the next twelve months and it relies on additional financing and sales of its common stock. However, no guarantee on any of these can be provided.
Presently, Mercer Corp. is optimistic about its new project, though the current price crash is not much promising for the stock.
