In early morning trade on Monday, the stock price of Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC) opened in green with gains of over 16%. The green opening comes as a respite for investors as the stock declined sharply from almost $0.0014 to $0.00060 in last few trading sessions.
The decline in Trans-Pacific is not really surprising as it posted dismal numbers in its latest financial report. As per the report, the company had cash and current assets of nearly $23,000. The total assets came at $31,000 and total current liabilities stood at $771,000. The company generated no revenue while net loss was $3 million.
Like most of the OTC traded firms, the report highlighted the horrific dilution recorded in past few months. As of June 15, 2015, the company posted 3.7 billion outstanding shares. It came as a shock as just a quarter ago, the outstanding share figure was nearly eight times lower. The company’s stock has been diluted more than 600% in last quarter.
On June 22, 2015, the company reported that it is reducing outstanding common shares count by $7.78 billion. Bill McKay who is the CEO of Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC) expressed that the company committed to shareholders to reduce the outstanding number of TPAC common shares, and now is taking necessary steps to fulfill the commitment. The plan to lessen outstanding common shares is one of the primary objectives of the company. The CEO prefers to use social media to keep shareholders updated on company’s plans.
The company deploys its aerospace bearing know-how at its China’s facility to fabricate and offer parts for both commercial fleet, and general & commercial aviation planes. In the related industry, the parts are known as self-lubricating spherical bearings. These are the vital components that assist in flight-critical operations including landing gears.