In the last two months, Green Technology Solutions Inc (PINK:GTSO) saw its share value evaporate at a high speed. During this period, GTSO shares went down from $2 per share to $0.32 and seemingly there are no indications as to how long the devaluation would continue.
It appears that the decline was resistant to the constant updates coming from the company on its rare earth operations. Two days ago, a press release announced that GTSO was negotiating the acquisition of Klean Industries, which owns a patented technology for the production of transportation fuels from waste rubber, plastic and styrofoam.
Last week, it was also announced that GTSO was working to develop new sources of rare earths outside of China with a primary focus on Mongolia. However, none of these announcements was enough to reverse the downward slalom of the stock.[BANNER]
On Aug. 1, an 8-k was filed to announce the convertible line of credit granted to the company by Wasserman Investments. The credit line is for the amount of $3.25 million, which is convertible along with the accrued interest into common stock at $0.05, or 60% of the three lowest closing bid prices during the 12 months prior to the conversion.
The convertible part of the issued credit was most likely the reason that made investors worry about potential dilution. Thus, the company’s shares took another plunge down from the $0.5 level at which GTSO had anchored for a short while.
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