Sionix Corp (OTC:SINX) gains shockingly these days. Yesterday, the stock price increased by 42.50%, and traded volume of 
SINX exceeded 8 million shares. The question is will the climb continue?
Judging by the latest news about Sionix, the up move might certainly continue.
Last Friday, the company announced it has entered into a Securities Purchase Agreement with RevH2O LLC pursuant to which the company agreed to issue and sell, 4,166,667 units, consisting of common stock and warrants. According to the announcement, the investment closed, and the Investor transferred funds to the company just today.
Apart from this news, yesterday SINX issued another one reporting that it has entered into a Water Treatment Agreement with McFall Incorporated in the Williston Basin of North Dakota. The announcement stated that Sionix expected to treat from 4,800 – 9,600 barrels of contaminated water per day at specific drill sites, which immediately inspired investors.
Sionix designs and has commenced production and active marketing of water treatment systems for improvement of the treatment of water for municipalities, wastewater treatment, and industrial wastewater. Historically, the company used to trade much higher, though since last April the stock price has been moving down.
As of December 31, 2011 the current liabilities of SINX were 3 times higher than its current assets, however, the net loss rose up significantly. At the same time, both – the stockholders’ deficit and the accumulated deficit flew up.[BANNER]
The company’s source of liquidity has been the sale of its securities and deposits received from orders for its water treatment systems. Nevertheless, there can be no assurance that sales of SINX securities or of its water treatment systems, if such sales occur, will provide sufficient capital for its operations.
As Sionix has limited cash flow from operations, its ability to maintain normal operations is entirely dependent upon obtaining adequate cash to finance its overhead, research and development activities, and acquisition of production equipment. Despite the recent agreements, it is unknown if SINX will achieve a level of revenues adequate to support its costs and expenses.
Besides, even if any financing is obtained, it will likely involve additional fees and debt service requirements and Sionix might not implement its business plans.
