Sunvalley Solar, Inc. (OTC:SSOL
, SSOL message board
) share price tanked yesterday to its absolute bottom since the stock is trading on the OTC market. Trading volume was comparable only the volumes realized in September when the share were heavily promoted and the recent events around SSOL make the stock look even more suspicious.
It seems like the strong buying pressure created by the aggressive promotions and by the numerous press releases of the company in the middle of September has now fully expired. Even worse, it has turned into strong selling pressure and those who bought shares during the promotions and kept them in the hope that the share price will not tank have maybe finally lost all of their patience after the company filed its third quarter report last Monday.
SSOL share price dropped 40.68% yesterday and closed at $0.014 as almost 25.60 million shares were traded. The sharp fall looks reasonable, as the expected profitability seems canceled again and the business still depends on raising capital from the outside. The reported sales for the three months ended September were 40% down from the previous quarter and the following news concerning the planned equity funding agreement was also not so encouraging for the future liquidity of the company.
In September, SSOL had announced a drawdown financing Agreement with a private equity fund that had agreed to purchase shares of Sunvalley Solar for $10 million over a period of three years. Four days later, the company filed with the SEC that the agreement had been terminated. No reasons were mentioned, which maybe also provokes concerns that SSOL might be just a speculative bubble.
Another announcement from the beginning of last month adds even more shady look of SSOL stock, although it probably has nothing to do with the company itself. According to the announcement, SSOL was among the stocks promoted by a website run by some New York longshoremen arrested for helping Panamanian drug dealers smuggle nearly a ton of cocaine.