The effect of the latest events around Portage Resources, Inc. (PINK:POTG) on its share price was far from positive: from $0.80 at the end of July to less than $0.20 as of yesterday. In that time, the company announced a stock split, which looks like the most probable reason for the fall. 
POTG recorded another subsequent negative session yesterday, closing at $0.165 for a share. This closing price is 13.68% lower than Friday close, but there are still some more support levels before POTG drops below $0.10 for a share. Yesterday’s trading volume was 4.73 million shares, which is less than the average for the stock.
After market close on Friday, the company issued a corporate update that explained the shareholders how the previously announced dividend and stock split of POTG shares in the ratio 10 new shares for every 1 share held would take place. The update for the shareholders did not help the share price stop falling down, however, neither did the announced before that intentions to acquire a number of new mining properties.
The 8-k filing announcing the stock split came out on July 28. According to it, POTG Board of Directors has approved the payment of a dividend whereby shareholders would receive a dividend payable as a ten for one forward split of the issued and outstanding shares of the company.
Record Date is August 8, 2011, while the effective date is set as August 10, 2011. Thus, the current number of POTG issued and outstanding shares should be over 4 Billion. That number puts an incredible market cap on the company, given its total assets of $533 (all in cash) as of February 28, 2011.
