Clenergen Corp. (PINK:CRGE)
has been climbing up progressively since last week. On Friday, the stock added another 82.14%
to its price and its traded volume flew up. Unfortunately, at this point the explanation on the up move remains in mystery.
Historical data shows that Clenergen has not released any news on its business since last October and its present activities are unknown. Despite this fact, the stock makes phenomenal gains which provokes traders' attention. Anyway, what's happening with CRGE is still to be seen.
Clenergen Corporation, a development-stage company, focuses on installing, owning, and operating renewable distributed environmental power systems. In October, the company filed a few amendments with the SEC related to its financial report. The last announcement was an 8-K Form reporting that Mike Starkie has submitted his resignation as the Non Executive Chairman and Acting Chief Financial Officer and as a director of Clenergen Corp. Since that time, no news on the company was to follow.
After filing a Notification of Late Filing, the 10-Q report of CRGE for the period ended July 31, 2011 came up last September. However, the results were disappointing. The company's liabilities were much higher than its total assets and the stockholders' deficiency exceeded $3 million. Besides, the accumulated deficit during the development stage also got higher, while the revenues were still missing.
Management anticipate that they will finance their overhead, consulting, directors and advisory fees largely from the issuance of stock, until such time that funds provided by operations and other revenue streams are sufficient to fund their working capital requirements.
However, there can be no assurance that Clenergen will be successful in achieving their financing needs at reasonable commercial terms, if at all. Meaning that there is substantial doubt about the company's ability to continue as a going concern.