One hundred days have passed since Xynergy Holdings Inc. (PINK:XYNH) shifted more than 1 million shares a day. With the current trading volume having been reduced to the absolute minimum, an ambitious promoter, who has acquired 1.5 million XYNH shares, has embarked on an advertising campaign to bring back the spark XYNH stock needs in order to regain ground.Last Friday, XYNH’s management revealed it had approached an independent party to conduct tests on the company’s new hydrogen fuel technology. As a consequence, the trading of XYNH stock tripled in volume. However, the absolute numbers were so small that the three-fold increase in volume failed to exert any influence on the price. The latter closed at its Thursday level of $0.024 per share. [BANNER]
Now, back to basics. The latest investor awareness program was launched yesterday. This time, it seems to have been aimed at generating huge trading volume and a mammoth price surge, which would give the promoter the opportunity to get rid of its 1.5 million XYNH shares as soon as the price has reached a maximum level. Plus, Friday’s announcement was so vague that it did not mention any concrete terms. Obviously, the technology still has a long way to go before being implemented into a final product. Even if the tests were to commence tomorrow, how XYNH will pay for them is unclear. With a working capital deficit of $120K and a nine-month net loss of $180 thousand, the management will most probably resort to issuing new stock and diluting its current shareholders.
On the other hand, yesterday’s trading alert might prove successful for the company as well. If it manages to raise enough capital to ensure the further development of its revolutionary technology, it might eventually turn profitable and strike it rich.
While the positive hypothesis mentioned above may not be guaranteed, what is for sure is that with only 34 million outstanding shares (out of 1.9 billion) the company will definitely be increasing their number, at the expense of its most loyal followers.
