Amerilithium Corp. (OTC:AMEL
, AMEL message board
) stock price is going flat as the effect of its stock promotion wears off and its financial position remains questionable.
The one time deal AMEL struck with www.hototcs.com has cost them $15 thousand as disclosed on stockpromoters.com. There are no signs yet, however, of a strong share dumping. The company recently had been issuing new announcements on property acquisitions, which are partly responsible for their share price holding at the current level.
Amerilithium's share price doesn't have much history to it. As many stocks that freshly hit the market, it tends to show volatility in price, which was further fueled by the mentioned promotional service.
Fact is, the company has paid for one lithium property acquisition in restricted stock and the most recent one will cost them $440.5 thousand, which AMEL doesn't officially have. Their latest financial statements depict no assets at all, and there were no financing deals announced after the last 10-Q was filed.
The company has not announced any expectation to acquire additional capital. The prospect they target for acquisition are said to contain significant amounts of lithium, but they have no funds to start the recovery operations either.
A recently issued 8-K filing described the change of the company's name to Amerilithium as well as a stated 8 for 1 forward stock split, which was authorized by a majority of the shareholders on Feb 16, 2010. The number of authorized shares have also been increased to 150 million.
- There were 6.6 million shares outstanding on Sep 30, 2009;
- after split share count would be 52.8 million;
- stock can be diluted up 184% from this point.
Though the 8-K filing suggests the acquisitions of lithium prospects are a real deal, the lack of funding and increase in authorized share could lead one to think about possible equity funding rounds.