Have you dreamt of being able to buy real diamonds at a much lower price than the one determined by the market? If so, you would be surprised to know that there is a company out there whose purpose is just the same. Does it have the capacity to fulfil it, though?
The company in question is called Centaurus Diamond Technologies, Inc. (OTC:CTDT) and it has been one of the most actively traded stocks on the OTCBB for the last few days. As much as increased activity is always welcome, it should be happening for all the right reasons, which is not the case. In fact, third parties have paid promoters a total of $500 thousand in an attempt to give CTDT stock a huge, yet artificial, boost. However, what exactly is being promoted?
CTDT was formed as a result of an acquisition agreement sealed between Sweetwater Resources, Inc. and Centaurus Technologies, Inc. on Jan. 5, 2012. Prior to the transaction, CTDT had been known as Sweetwater Resources, Inc. – a Nevada corporation seeking profitable business opportunities to no avail, as far as the figures from its latest 10-Q report are concerned. Following the acquisition, CTDT claimed to have got a grip on a patented technology capable of producing cultured diamonds that are fully identical to natural diamonds in virtually every aspect, albeit much cheaper. Surprisingly or not, this statement quickly became the backbone of the promotional campaign. What promoters have failed to boast about, though, is the fact that the technology in question is still in the very early stages of R&D. At present, the technology is unproven and therefore not ready for commercial exploitation.
As it is, it will take a lot of technical expertise and financial resources to develop a prototype and a subsequent commercial product. CTDT does not seem to have either. Deliberately or not, the company has yet to file a full-on 10-K report for the fiscal year ended Mar. 31, 2012, thus keeping investors clueless about CTDT’s latest financial developments.
According to market data, the market cap of CTDT currently stands at $36.3 million. The company’s latest 10-Q report discloses current assets of $1,948, zero revenue and a cumulative net loss (since inception) of $140 thousand. What is more, the Risk Factors section of the report lays heavy emphasis on the bleak business prospects lying ahead of the company should the latter fail to raise additional capital. How is CTDT going to perfect the manufacturing process of cultured industrial diamonds when the company is virtually unable to cover its most basic everyday expenses? You could always ask the BoD members. They might still have something up their sleeve.
