Promotions have been an usual PR strategy for TAO Minerals Ltd. (PINK:TAON)
lately. After the company released a couple of
optimistic announcements on its activities, the stock jumped up 23.81% on Friday and its traded volume substantially increased. Nevertheless, TAON decided to secure the gain by promotions.
The stock was promoted yesterday for a total compensation of $20,000, paid by the well-known paying party Stock Appeal LLC. The same party has paid the massive promotional campaign of TAON last month, which cost them another $30,000 for "increased public awareness".
Along with yesterday's promotions, TAO reported that the company will be commencing a comprehensive trenching program at the El Colmillo gold project. The optimistic statements are probably capable of inspiring traders, however, if not the campaign might help.
Tao Minerals Ltd. is an exploration stage company that engages in the acquisition, exploration, and development of natural resource properties in Columbia. In mid-February, the company filed its 10-Q report, which appeared to be rather disturbing.
As of October 31, 2011 current liabilities of TAON increased by approximately 50% as compared to the previous period, and the net loss jumped up. Besides, both - the stockholders' deficit and the company's deficit also rose up.
Management of TAO stated that they have not yet achieved profitable operations. Thus, the company is dependent on their ability to raise capital from stockholders or other sources to meet their obligations and repay the liabilities arising from business operations.
Additionally, the 10-Q contains numerous risk factors related to the future successful operation of TAO, which obviously cannot be guaranteed.