price to close the day at $0.13 per share. What has caused the price fall is still unclear, though it is interesting how long it will continue.According to the records, Universal Potash released some positive news on its business, stating that the company has negotiated the acquisition to a majority interest in the potash rights to three square miles of prospective ground in the Paradox Basin of Utah. The optimistic announcement has not yet reflected on the UPCO stock price, however, the news wasn’t the only try to push it up. Yesterday, UPCO was promoted four times by a couple of websites, pointing out that the company has just acquired interest in 3 square miles adjacent to Libson Valley Paradox and the stock is worth watching closely. The campaign was paid by Allan James Group and cost $35.000. Apparently, the promotion can be considered as another effort for pumping up the stock price and the result is about to be seen.
Universal Potash Corp. is an acquisition driven exploration stage potash mining corporation. The main focus of the company’s management is the acquisition of leasehold properties and the development of these properties on a global basis. Presently, UPCO relies on its two new acquisitions to bring profit, however, it is too early for the final results yet.[BANNER]
Though, the most bothering fact about the company at this point seems to be its 10-Q report. According to it, as of end-December liabilities of UPCO are much higher than its total assets, stockholders’ deficit is significant, and the deficit accumulated during the exploration stage period is over $3 million. Meanwhile, UPCO has not yet established an ongoing source of revenues and its losses have been increasing. In that case, in order to continue operations, Universal Potash should either obtain adequate capital, or get profitable. The company relies on equity and debt financing, however, if the additional funds cannot be ensured, UPCO could be forced to cease operations.
