Blind man’s buff is a fun little game when you’re a child. However, when your money is riding on it, it’s suddenly not as appealing as when you were seven years old.
This time around pumpers are blowing hot air into Vision Industries Corp. (OTC:VIIC). The company is in development stage and is supposedly trying to enter the business of electric-hydrogen powered vehicles.
That may turn out to be difficult with seven employees, less than $3 thousand in cash and liabilities twice exceeding total assets, a considerable part of which are intangible. The recent raise in VIIC stock price is probably due to news that they entered into an agreement with Viant Capital LLC, a “boutique” financing bank. There is no financing taking place yet and the whole story is one big shiny forward-looking soap bubble.
The company has been generous in handing out convertible notes over the past two years. Curiously, though, those same notes were converted into company stock in June 2012. The total volume converted by three noteholder parties is over 30 million shares, converted at rates ranging from $0.03 to $0.05 per share. The conversion left the three holders with a summary ownership of 48% of the company stock, as an 8-K from late July describes.
Investors may be wise to proceed with caution on this one as Friday’s close price was $0.07, a good 3 cents above the average conversion price and with the ongoing pump campaign, it may go even higher before it crashes through the floor, should the three former note-holders decide to dispose of their millions of shares.
Previous pump attempts by PennyStockRumors, one of the pumper parties promoting VIIC, have been far from successful. Their pumps of HYSR and NWGC ended up costing naive investors a good deal of money, as seen on the charts.
Traders are advised to do their due diligence and be extra careful unless they want to end up being “It”, with pumpers teasing them to step on some broken glass.
