ProGreen Properties Inc (OTCMKTS:PGEI) recorded another double digit gains on the charts in Friday’s trading session. By the bell, the stock found itself 14% up at $0.00570 per share. The company had released another PR before the bell, which probably led the green move.

The buzz

ProGreen informed shareholders that it is now done with its outstanding convertible debt. The company’s convertible debt has been converted in full and hence it is free from dilutive convertible debt. It reported that all remaining debt amounts to $200,000 due to American Fastigheter AB and that is non-interest bearing and non-convertible. Now, getting free of convertible debt is definitely good news, and for ProGreen it’s twice as significant, given how drastically the convertible debt has impacted to its share structure in the last few months. Going through the firm’s recent quarterlies showcase some stunning dilution that has by now taken place.

In last December, ProGreen had nearly 150 million outstanding stock. By March 14, 2016 this figure had jumped to 306 million. Dilution of more than 100% in under ninety days marks a red flag and gives a valid reason why company is still stuck into double zeroes.

The performance

For the quarter ended January 2015, ProGreen reported $41,000 in cash. The total company assets came at $74,000 while total liabilities amounted to $1.9 million. ProGreen reported revenue of $32,000 on net loss of $856,000. The market participants wondering how the firm managed to move from 150 million shares to 300 million shares in a quarter will notice that subsequent to January 31 lender Vis Vires obtained more than 82 million shares priced at just $0.0005 per share. JMJ Financial, another notorious lender, got 14.5 million shares at $0.0002 per share. Whether the latest update will be enough to give ProGreen a further support closer to a cent still is an uncertainty.