RENS closed the last tradings session at $0.0382 and with a 27.33% jump in the share price. The stock has recently accumulated volume for another and even larger increase in the value. For some additional support, promotional e-mails for RENS have been sent yesterday evening, providing extensive research on the company and its gold mining properties. The e-mails contain no disclaimer and the promoter’s compensation, if there is any, remains undisclosed by now.
The promoter presents ASPA Gold has a junior company mining for gold and having prospective properties. What he fails to mention is that this is RENS third known business model and that it might be too early for building any revenue expectations among traders.
Initially, ASPA Gold business plan was to sell coffee at drive-through establishments in North Carolina, though none of the locations was ever completed. RENS next initiative to acquire or construct a plant to process liquid waste into ethanol failed on the inability to raise the needed capital. A present, the company actually holds interests in several mining claims in Arizona known as the Oatman Gold Project. The region is known for its historical gold production, which does not mean that RENS new business holds no risks and is this time bound to succeed.
While other companies pay salaries to their employees, last year RENS survived mostly on borrowing money from its officers and directors, that borrowings being after that partially converted into stock. Apart from a line of credit with a related party, which was as of end November 2010 in the process of acquiring a majority interest in RENS common stock, no other sources of funds have been secured so far.
Nothing has been mentioned also about the way RENS will pay to the investor relation firm that it hired at the beginning of the month. On the other hand, each of the two new directors of the company will get his compensation in the form of 300,000 restricted shares of common stock. Both have also agreed not to sell or lend these shares for a period of at least two year, which is basically a positive signal to the market.
