Last few trading sessions have not been great for Minerco Resources Inc (OTCMKTS:MINE). The stock price declined more than 13% on Monday’s trading session. However, it erased a part of major losses on Tuesday and surged more than 7% to close at $0.00550 with share volume of 21.55 million. The share price has remained subdued from past one week.
In the latest press release, Minerco announced that its wholly owned subsidiary bought 21% of additional stake in Avanzar Sales and Distribution, LLC. With the last investment, the total stake now stands at 51%. The CEO Scott Vanis called the purchase of additional stake as a vital part of the strategic plan to enhance investor value through investing in cash flowing assets.
Investors didn’t seem much excited with the last press release of Minerco, and they had a reason to worry about the last deal. As per the purchase terms, the company opted for a structured payment process of $400,000 throughout 2015. It clearly indicates that the company’s total liabilities of $3.4 million would grow in coming one year. The reaction of shareholders implies that it would take substantial measures for Minerco to come back into the investment list of people.
Minerco Resources Inc (OTCMKTS:MINE) failed to make a base to continue its next run as its 2Q results and announcement to list on a reputed exchange didn’t instill any excitement the investors. The CEO, V.Scott Vanis mentioned in a letter to shareholders that the company has posted strong growth during 2Q2015. The revenue came at $740,000 in 2Q versus $502,000 in 1Q2015. The revenue jumped massive 47% quarter-over-quarter. The assets surged 270% to $2.72 million between July 2014 and January 15. The purchase of stake in Avanzar resulted in increase in total assets. The liabilities came at $4.94 million in 2Q.