Widespread rumors of Renewal Fuels, Inc. (PINK:RNWF) reverse merger agreement with Competitive Power Ventures Holdings, LLC caused a one day stock price explosion as the suggested buyout put on a 12 cents per share price target.
The trading went crazy because the suggested price came with a humongous premium to the current $0.0006 per share. However, the merger agreement was not announced through any major news sources, nor it was reported in the appropriate forms that should be filed with the SEC.
The supposed agreement proposes a buyout of a public shell with Competitive Power Ventures as a surviving private entity. There was no mention whether the company plans to go public after that, but IPO was contemplated.[BANNER]
RNWF hasn’t officially confirmed or denied the agreement. The only place to see the whole text for this agreement was the message board post with which it was supposedly leaked. Many traders behind the price action jumped in either on the merger story, or due to the independent newsletter picking up the price action and suggesting people this might be good.
A similar price action for this same stock happened back in May this year as well. That time the false reverse merger rumors drove the price up by more than 257% before it topped out. Aftermath resulted in 88% loss of value.
