Pershing Gold Corp (OTCMKTS:PGLC) released its annual report last month after which the stock price has been continuously declining. After a subdued month, the stock price is showing the first sign of respite and stabilizing around the levels of $0.383. Before the company submitted its annual report, it reported another record high concentration in Relief Canyon mine.
In the first week of March, it trumped its previous highs of 2.24 and 2.57 ounces per tonne with a press release stating a new record intercept has been discovered, with 3.61 ounces per tonne. The announcement supported declining stock price of PGLC but then the 10-K was released.
As per the latest annual report, Pershing Gold reported cash of $15.1 million and total assets of $41 million. The total liabilities came at $1.5 million. The company posted annual net loss of $16.4 million and revenue was zero. Pershing Gold disclosed its plans to implement a reverse split of the company’s common stock. It has even applied for listing on the reputed NASDAQ exchange.
Among a number of guidelines that the company would require to fulfill, the most important one is its share price. The company scheduled for a shareholder meeting in last December and extended the period during which the company’s board can execute a reverse split by twelve months.
The board of Pershing Gold decided the ratios for the reverse split to be set no less than 1-for-4 and should not exceed 1-for-25, equaling a decline of outstanding PGLC’s common shares between 4 and 25 times.
Most of the times, the reverse splits on the OTC marketplace send investors cringing but Pershing Gold is planning the reverse split in order to uplist on NASDAQ platform and ensure stock price is high enough even after a probable post-split hiccup. In last trading session, PGCL stock price surged more than 4% to close at $0.383.