How would you like to turn $44 thousand into $8.7 million? Does Centaurus Diamond Technologies, Inc. (OTC:CTDT) give you the opportunity to do so? Well, probably not, but it did, for the company’s CEO.
Around July 4 there were numerous rumors that the new Awesome Penny Stocks (APS) pump would be on CTDT. There was actually a fake pump campaign. Pretending to be APS another pumper sent out tout emails on CTDT (SWTR prior to July 9).
The fake pump triggered a dump, but yesterday things changed. A real promotion by a different pumper touted CTDT up to $0.20 per share, a gain of more than 110%. Is CTDT worth that much? Probably not, but a $500 thousand compensation can have such an effect.
This pump is what turned $44 thousand to $8.7 million for Alvin Snaper. Mr. Snaper is an inventor with hundreds of patents who was the sole shareholder of the company which reverse merged into SWTR. According to a filing, Mr. Snaper, now CEO, President, etc., got approximately 43.8 million shares of CTDT valued at $0.001 per share. Those shares are now worth about $8.7 million on paper, and actually Mr. Snaper got those shares through Innovative Sales in consideration for the asset purchase.
What did Mr. Snaper bring to CTDT that would be worth that much money? He took over, bringing with him a patent on a technology, which would theoretically allow the large scale production of artificial industrial quality diamonds.
The keyword here is “theoretically”. The filings of the company reveal that CTDT is still in early development and a long way from starting the actual production of said diamonds. Trial operations and beta testing may provide insignificant amounts of diamonds, assuming the company succeeds in making an industrial diamond suitable for sale. For now it seems CTDT will have to rely on equity to finance it’s operations.
In June the company announced it had raised $600 thousand through a non-broker private placement. Interestingly enough, a part of that money will go to Mr. Snaper personally, since the company is leasing its corporate office space from him. Practically, he’s paying himself $2.5 thousand per month just for the office space, which happens to be a warehouse.
The pump effort this time isn’t a one day deal. The promoters carrying out the campaign say they will continue for 2 more weeks, at least.
The fact that the company only has a patent and some $600 thousand in financing, and at the same time, its market cap is about $15 million, doesn’t bother the pumpers touting CTDT stock. After all, they expect to get $500 thousand. Traders and potential investors, on the other hand, may want to exercise caution.
