U.S. Precious Metals, Inc. (OTC:USPR) started falling down. After some impressive gains during the past week, yesterday, the 
stock lost 20% on the market on a substantial trading volume. Though, the reason for the unexpected fall is yet unknown.
The latest news by USPR came up yesterday, when they reported that the company has engaged the NY based investment bankers DME Securities LLC as its strategic and financial advisory services. Mr. Dave Burney, President of U.S. Precious Metals, defined the engagement of DME as an important step for his company to maximize its potential value and step forward in the business.
This news seems capable of pumping up USPR stock price again, though the result is still to be seen.
U.S. Precious Metals, Inc. explores and develops precious and base metal properties in the U.S. and Mexico. Last week, the stock price notably increased, however, the up move was broken.
Meanwhile, the last news by the company was related to some changes of its directors and the high trading activity of USPR shares of common stock. According to the records, over the past month, some affiliates of the company have been often acquiring and disposing shares of USRP common stock, most probably due to its price hesitations. Though, at this point there is no more information about that.[BANNER]
Unfortunately, the financial condition of USPR is not able to support its stock price. The company’s last 10-Q is full of risk factors. Among these, there are immediate need for capital, potential dilution resulting from the issuance of new securities for any funding, timing and amount of production, if any, and many more.
Apart from the poor numbers on its balance sheet, the management of USPR state that they have not paid $1.120.000 in principal and $332.304 in accrued interest as of February 28, 2011 due under the terms of the 2009 convertible notes that were originally due on December 31, 2010. In case they fail to make the payment in the immediate future, this event may have a material adverse affect on the company’s business such that USPR may have to seek or be forced into bankruptcy under the federal bankruptcy laws.
