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Lithium Exploration Group’s CEO Releases Open Letter to Concerned Shareholders

Thursday, 23 October 2014 04:00 AM

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Lithium Exploration Group Inc.’s (OTCQB: LEXG) stock volume was flat Oct. 22, with 11 million shares changing hands, substantially less than its 30-day average volume of 17.7 million shares.

The slowdown came the same day the Phoenix-based precious-metal exploration company’s CEO Alex Walsh released an open letter with the purpose of “responding to shareholder concerns.”

Here is an excerpt from the open letter:

“Last week, shareholders passed a vote to increase our authorized shares and approve a reverse split of the common shares of Lithium Exploration Group. I want to address these issues by commenting on each of them individually. It is also important for you to note that I abstained from voting any of the shares that I control for both initiatives.

If we had not increased our authorized shares, we would not have been able to meet our obligations to creditors and would have been forced to sell our disposal assets to pay principal, interest, and, more than likely, penalties to avoid bankruptcy. That would have been a very unfortunate situation and could have been detrimental to everything that we have built to date. Many of you have expressed concerns about management issuing bonuses and other chicanery to take advantage of the increase and dilute shareholders. I can assure you that is not the case. Should the company not be able to fulfill obligations in cash, we will issue shares to meet them; but there will be no raises, bonuses, or additional compensation to any employees or management until we get this company producing positive cash flow and moving ahead.

We authorized a reverse split for the purposes of bringing our outstanding share balance down and our price up when the time is right. In part, this is because some brokerage firms simply cannot trade below certain price points, and, in part, this is because I have a goal of bringing LEXG's market cap to $100MM and, when we are there, I would prefer to see us well above $1 per share. We will not be reversing the stock just for the sake of reversing the stock. We will do it when we have cleared the path for price appreciation and market cap growth. At this time, I have not considered a timeframe for this, but I can assure you it will not happen in 2014.

The one thing that we have discussed doing in the next few months is changing our name and ticker to more accurately reflect our present business operations in technology, disposal, and mineral exploration. The name Lithium Exploration Group is still relevant for part of our business, but should not be misconstrued as our only endeavor.

In March of 2014, we raised $1,000,000 to purchase 50% of Tero Oilfield Services ("Tero"). Over the past six months, we have seen a precipitous decline in our market cap but we have added assets and revenue to our financial statements. When we had the business valued 12 months ago, it was worth $2-2.4M. Since then, the company has increased both revenue and profitability, so by any stretch of the imagination, the value of the company has increased. We recently raised the capital to close on the option to purchase an additional 25% of Tero, effective January 1, 2015.”

Financials Not Impressive

In addition to LEXG’s share value falling, Lithium’s financials released for the first quarter may have played a part into negating some of Walsh’s positive comments and optimistic outlook.

Here is a summary:

  • ·         Cash on hand: $731 thousand
  • ·         Current assets: $803,000
  • ·         Total assets: $1.71 million
  • ·         Current liabilities: $4.37 million
  • ·         Quarterly revenue: $17,882
  • ·         Quarterly net loss: $4.76 million

On Oct. 22, the share price of LEXG closed at 0.0038 cents, up 0.0004, or 11.76%, from its previous day‘s close of 0.0034 cents.

Find out what could be the best investor’s move when it comes to LEXG by getting the complete report here or by cutting and pasting the following link in your Web browser:

www.sixfigurestockpicks.com

 

Minerco Resources Stock Volume Soars Two Days In a Row

Minerco Resources Inc. (OTCQB: MINE) was once again one of the most traded penny stocks Oct. 22, with 45.7 million shares changing hands, substantially higher than its 30-day average volume of 32.5 million shares.

The continued surge is being fueled in part by the company’s Oct. 7 announcement that it had scheduled a rush production run in mid-October for one of the original flavors of its functional sparkling waters, VitaminFIZZ.

The move became necessary in order to meet the robust demand of the company’s Amazon store’s customers. Sales for the Strawberry Watermelon flavor of VitaminFIZZ have far exceeded the expectations of Level 5 and currently this popular flavor is sold out online.

Nonetheless, Minerco’s stock volume and value continued to trade flat Oct. 7 with its share price closing at 1 cent, unchanged from the previous day’s close, on volume of 33.9 million shares.

The company has been extremely quiet, expect for a recent announcement that it had scheduled delivery of its functional sparkling water line, VitaminFIZZ(R), to Walgreens stores in Southern California starting the week of Sept. 29, 2014.

Walgreens has approximately 300 locations in the Southern California region, so this has the potential to be a big revenue boost for Minerco.

On Oct. 22, MINE shares closed at 1 cent, unchanged from the previous day’s share price.

Find out what could be the best investor’s move when it comes to MINE by getting the complete report here or by cutting and pasting the following link in your Web browser:

www.sixfigurestockpicks.com

 

GEI Global Energy Corp.’s Experiences Low Stock Volume

GEI Global Energy Corp.’s (OTCPink: GEIG) stock volume was flat Oct. 22, with just 8.6 million shares changing hands, nearly 7 times less its 30-day average volume of 57.9 million shares.

The Flint Mich.-based fuel cell company has been issuing a flurry of press releases , but they contain very little substance and a lot of hype and forward-looking statements. 

GEIG’s share value closed at 0.0006 cents, up 0.0001 cents, or 20%, from its closing price of 0.0005 cents the previous day.

Find out what could be the best investor’s move when it comes to GEIG by getting the complete report here or by cutting and pasting the following link in your Web browser:

www.sixfigurestockpicks.com

 

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www.sixfigurestockpicks.com is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. Investors should always own due diligence with any potential investment.

 

 

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