Boston, MA 09/02/2014 (wallstreetpr) – Shares of Vision Industries Corp (OTCMKTS:VIIC) were up more than 120% in the early afternoon on Tuesday, but there was no news to explain the amazing gain that also came on a volume bigger than the daily average. The company recently made a Schedule 14A filing in which the company sought to increase the number of its authorized shares, but failed to obtain a quorum at a shareholder meeting.
Raising authorized shares
The company wanted to increase its authorized shares to 10 billion, which is far beyond its 174 million outstanding shares currently. The development in Vision Industries Corp (OTCMKTS:VIIC)’s shares doesn’t appear to have anything currently or in the recent past to given a hint. What is known is that the company has Asher Enterprises and JMJ Financial as some of the holders of its convertible note, according to the last quarterly disclosure. Even so, the company has not revealed the conversion price of the convertible notes, except that Asher’s holding is said to convert at a price that is derived from market prices.
Promised revenue missed
Two years ago Vision Industries Corp (OTCMKTS:VIIC) benefited from promotion campaigns that also predicted millions in revenue. However, the stock today trades in the sub-penny level, and it even has no revenue. The company also has convertible debt that borders on severe toxic. According to the June 2014 filings, the company revealed $7,000 in cash and $2.6 million in current liabilities. There was no revenue but the company reported $138,000 in quarterly net loss. That June financial statement also doesn’t explain the wild excitement in the stock.
Without a PR or even solid financial statement to explain the ongoing surge in share price of Vision Industries Corp (OTCMKTS:VIIC)’s stock, there appears to be a number of red flags in the stock that investors may have to consider. All in all, investors may have to perform due diligence before making a move in the stock.