Pershing Gold Corp (OTC:PGLC
, PGLC message board
) started the week at $0.54 per share and a traded volume of over 956 thousand shares.
Though, the zero price change yesterday does not mean that PGLC is ready to give up the up move. On the contrary, the company decided to pump up its stock price by news and promotions.
The series of news started yesterday when PGLC reported that it has changed its name and stock symbol from Sagebrush Gold Ltd (SAGE.OB) to Pershing Gold Corporation (PGLC.OB) in line with its Relief Canyon Project and the acquisition of promising gold opportunities.
In addition, PGLC announced that it has cancelled 32,080,953 outstanding warrants and issued 9,624,286 shares, resulting in a net reduction of 22,456,667 shares in the fully-diluted share count of the company, in order to improve its structure.
Apparently, the announcements were meant to encourage traders, though these were supported by more news and promotions. PGLC was promoted yesterday for a total compensation of $50,000 and today the optimistic press releases continue.
According to one of these, Victoria Gold Corp. has just accepted an offer valued at $6 million from Pershing Gold Corp. for its interest in the Relief Canyon Property in Nevada. The closing of the transaction contemplated by the offer is expected to occur shortly.
So far, so good. Now, the question is what happens next? Anyway, if the whole PR strategy of Pershing will be successful should be seen any minute.
Pershing Gold Corp is a newly-formed gold exploration company with a focus on the highly productive gold trends in North Central Nevada. As of September 30, 2011 the former Sagebrush had $1.4 million in cash and cash equivalents, however, its liabilities were over $20 million.
And while Pershing Gold intends to acquire a property valued at $6 million, the company's going concern status states that future issuances of its equity or debt securities will be required in order for PGLC to continue to finance its operations.