Mundus Group Inc (PINK:MNDP) took a downturn after its last quarterly report was filed two weeks ago. The financial report showed huge gap in the company’s coffers but still this didn’t stop certain promoters to keep advertising the company.
In fact, the promoters actual have another stimulus to get into the market awareness game, namely the compensation they receive for their services. In the case of MNDP, it was Stock Rock And Roll who started the campaign.
The promoter issued a newsletter covering the recent developments at MNDP last night after the end of the trading session. Stock Rock And Roll had received $12500 for the service from Kaleidoscope LLC.
What attracts the attention is that the data about the capital structure of MNDP presented by the promoter and OTC Markets differ from what was stated in the quarterly report of the company.
According to OTC Markets, MNDP has 11 million outstanding shares and 8.5 million float. On the other hand, the filed financial document indicates that as of April 30, 2011 there are 5.5 billion issued and outstanding shares of which 1 billion are in the public float. [BANNER]
This data discrepancy will have to be cleared so that investors will be able to make more sound decisions about their investment in the company. For now they will have to rely on the information presented by the quarterly report.
According to the official document, MNDP has a huge working capital gap and negative net income result for the quarter. Between February and April this year, the company has burnt $3 million through its operating activities. The company finances its activities mainly by the issuance of notes payable, which sooner or later will have to be covered.
MNDP is a pink sheets company which deprives everything contained in its reports form official power. Investors will have to carefully estimate the plausibility of the financial report and the statements of the promoter about the company’s capital structure before they venture into trading MNDP stock.
