New Generation Biofuels Holdings, Inc. (PINK:NGBF) stock has been in a consequent downtrend for the past year, though its share price surprisingly multiplied in the last two trading sessions. There has been no news recently, and from the company’s latest announcements it becomes clear that NGBF should have run out of business by now. 
NGBF closed the last trading session at $0.02 and the share price jumped 57.48% from Friday. Over 8.5 million shares were traded during the day, which is the highest trading volume for the past six months. NGBF reached $0.28 during the session, which is also the highest share price of the stock for the same period of time. The lack of any news from the company since the middle of October makes this incredible gain look very suspicious and speculative.
On October 17, NGBF filed its latest 8-K. According to it, the company has signed another following amendment to a Subscription Agreement with four investors. Under the amendment, one of the investors would provide $25,000 in funding to the company. The initial funding agreement was from February 1, 2011 and according to it NGBF issued senior secured convertible notes for $1,000,000 in gross proceeds. After several amendments and after the company had not been able to meet its obligations on time, its financial condition seems rather desperate right now.
The latest available 10-Q is for the period ending June 30, 2011, showing current assets for only $171,000 as opposed to current liabilities of over $5.3 million. NGBF total debt exceeds $7.2 million, while the largest part of its total assets of $6 million is intangible and is valued at $4.7 million. Thus, in its latest 8-K filing from October the company states that without additional funds it has enough cash to operate for less than thirty days, which have already expired.
