A Pink Tier company that had hardly been traded before got a 361.54% gain and closed at $1.20 yesterday. The company in question is Rising India Inc (PINK:RSII).
The apparent reason for the sudden interest in RSII can be found in news released by the company. In the PR the company claims it has entered into a stock purchase agreement with a number of companies, whereby the stock of RSII is to be purchased for $4 per share.[BANNER]
There are a number of unclear aspects of what is going on here. First of all, RSII hasn’t generated a dime of revenues so far, the company had a little over $2 million in current liabilities and $130 thousand in current assets on Jun. 30.
Traders should decide whether the contacts of the company on the US market are worth $4 per share. Additionally, the press release itself was issued after the market had already closed, yet most of the trades went through before noon yesterday.
It will be very interesting to see how the story unfolds after the weekend.
