Smart Ventures Inc (PINK:SMVR) filed an 8-K form for a share exchange agreement on Jun. 16. According to the agreement, SMVR is to acquire all shares of Metal Assets S.A.
The filing didn’t cause much of a stir on the market. SMVR hasn’t been actively traded, but yesterday all of a sudden 201 thousand shares were traded and SMVR closed at $0.48 for a 20% gain.
Additionally, SMVR is in the focus of a paid promotion. Penny Alerts is calling SMVR their next Monster Pick.[BANNER]
The mail which is part of the promotion is not the most encouraging. For starters, there are numerous typos and mistakes, such as “…That is a literally tons of steel”. While those may just be technical errors, one might expect more diligence when the compensation is $100 thousand.
The mail goes on about how the process SMVR uses can potentially decrease construction costs in half on an annual basis, compared to traditional mini-mills. Indeed, if the claims made in the promotion are true, SMVR has potential. But the fact is, at this point there is no data about the financial situation of SMVR.
The latest report is for Q1 of 2011 and at that time the company had absolutely no assets. Their liabilities were not nearly as enormous as those of other exploration-stage companies on the OTC, but still a lot more than the zero assets.
The lack of assets is disconcerting, because the 8-K for the acquisition states the cost would be $9.8 million. On top of that, SMVR will issue 22 million shares of its common stock to the shareholders of Metal Assets.
With very limited information about the current situation of SMVR, the $100 thousand promotion has the chance to push this stock higher. However, there can be no guarantee about that. Even if it does manage some more impressive effect than yesterday, it is not clear how long that would last.
