BEESFREE, Inc. (OTC:BEES
, BEES message board
) opened the market yesterday with a gap up and closed with a significant increase in the share price. Although the company already holds an unreasonably high market value for a development stage entity, it got a first promotional campaign
starting last night.
The latest session closed with a 11.90% increase in the share price at $2.35 on a trading volume of 4,300 traded shares. BEES is very illiquid with an average trading volume of around 3,500, which is probably the main reason for the promotion. It is very doubtful, however, if BEES could retain the same share price and market value after it gets popularity in the trading community.
BEES got covered yesterday by a number of stock promoting websites whereby the disclaimer of one of the promoters reveals a compensation of $15,000 paid by a third party, possibly a large shareholder of the company. That is also most likely the total compensation paid for the campaign.
In its last available 10-Q, BEES says it is a development stage company with no significant assets and no operation that has just shifted its business model from bio-plastic products to the greenhouse gas carbon credit market. In its latest press releases, however, the company claims to be engaged in yet another different field of business - the development and commercialization of solutions for beekeeping communities worldwide.
An 8-K reveals that this new business shift occurred in September last year through a merger with a wholly-owned subsidiary of the company. In any case, obviously BEES has not commenced any operations yet and its weak cash position of $50,000 as of last September makes it necessary to have the stock promoted and more liquid.