Still on the Pink Sheets, USAG share price tanked the next 30.23% yesterday and settled at $0.003. The trading volume was also noteworthy. Over 157 million shares were traded, the highest volume in USOG trading history on the Pink Sheets.
Now, USOG looks closer to the pre-promotional trading range of below $0.002, having demonstrated that the intentional market awareness for a stock of that kind should not be enjoyed for too long. Traders seem to hope for the 50-day moving average of $0.002 to provide support, but apart from the technical side maybe the company should start composing the next press release about the discovery of another new large oil formation.
Though, USOG have some revenues and the lack of cash and the large debts seem to be the problem. Thus, an announcement about improved liquidity will probably receive much better response. At the end of June, the company had around half a million dollars in cash and cash equivalents and over $6 million in current liabilities.
In the latest quarter report management states its intentions to keep diluting the shareholders in order to raise cash for operations and for the urgent debts. There are currently 1.43 billion common shares outstanding and in the beginning of August USOG increased the number of its authorized common stock to 5 billion shares.
