AGR Tools, Inc. (PINK:AGRT
, AGRT message board
) has been relentlessly pumped
since last Tuesday. Often the effect of the promotion wears off within one session, but AGRT has managed to keep its price level.
There is more than one reason for the relative success of the pump campaign. One is that the compensation for the promotional services is $100 thousand.
The immediate impact on May 29 was a staggering surge of 271.85% to a closing price of $0.502. On Friday, AGRT added another 2.91% closing at $0.53. The volume was approximately 3.8 million.
The torrent of promotional newsletters hasn't stopped yet, and it's likely to go on for another two months, according to the disclosures in the newsletters.
Another reason for the current price level of AGRT is that the company has stated it intends to operate in the lucrative oil & gas sector.
It's hardly an original statement. Traders interested in the sector have likely many other young companies claiming they plan "to build value through intelligent acquisitions." Very few, if any, have delivered.
Last Thursday, AGRT announced it had secured a $20 million non-dilutive financing. The company claims an institutional investor has signed a binding financial agreement to lend AGRT up to $20 million for up to 30 years with an annual interest of 10%.
So far today, AGRT is down 3.49%. It is not clear what may happen by the end of the day, but it seems the price has reached a level where the hype may prove insufficient to fuel further increase.