Friday RNRG closed with a 108.33% positive price change and a traded volume of over 6 million shares. Looks like something has impressed traders and the heavy buy has begun.However, no particular reason for the current high trade can be found yet. The last update by Revonergy came up on Dec 6, when the company reported it was going to participate in an UK Government led Trade And Investment Mission to Asia. After that, no news was to follow. Though, RNRG has got the bullish trend.
As soon as the high trade has started, a new discussion was opened on investorshub.com message board, suggesting that the stock was worth buying. According to some opinions, the present climb of RNRG was due to a closed deal with Vitol Group, however, the deal was finalized on July 8. Although investors seem quite optimistic about the stock, the future is yet to be seen.[BANNER]
Revonergy Inc. is engaged in the acquisition, development and operation of renewable energy power plants globally. In September, the company entered into a Preferred Stock Purchase Agreement with Kodiak Capital Group, LLC. for a total investment amount of up to $500 thousand. According to the agreement, at closing Kodiak will receive five year warrants to purchase 3,750,000 common shares of Revonergy.
The 10-Q report of RNGR shows that the company has generated no revenues and its liabilities are almost 3 times higher that the total assets. Besides, Revonergy’s deficit accumulated during the development stage totals approximately $570 thousand, not including the net loss that has significantly increased.
Due to the incurred losses since inception, the company needs to “raise additional equity to finance the further development of a market for its products until positive cash flows can be generated from its operations”. The management claims that their current cash balances will not meet the working capital and capital expenditure needs for the whole of the current year. Thus, if Revonergy fails to find additional cash for its projects the company might need “to reduce or limit its operating activities or even discontinue operations”.
