Anastas Gegov

Solar Power, Inc. (OTCMKTS:SOPW) – The Dilution Continues

by Anastas Gegov September 23, 2014

Solar Power, Inc. (OTCMKTS:SOPW, SOPW message board) has experienced a strong upward wind since July and the company stock has risen from $0.30 per share to above $1 per share levels, which is rare for a ticker registered in the OTC markets.

 

The press releases keep coming out while we see a significant increase in price over the last few months, as well as a serious surge in daily volumes. Things only slowed down a bit last month after SOPW’s report for the second quarter was filed and the price of the company stock was hovering around $0.70 per share. The report itself featured these numbers of prime interest.

 

  • cash: $5.85 million
  • current assets: $17.24 million
  • total assets: $72.84 million
  • current liabilities: $44 million
  • total liabilities: $56.85 million
  • quarterly revenues: $6.32 million
  • quarterly net loss: $1.34 million

 

And while the company is one of the few to be listed on the OTC markets that actually has a significant revenue stream that is increasing, the liabilities are just massive. To add to that, we have the massive issuance of shares that we have been witnessing in the past several months.

 

Since April this year we have seen the company shares increase by a whopping 136 million, of which approximately 69 million were issued for a cancellation of a convertible bond priced at $11 million, which puts their price at just $0.16 per share. An additional 67 million shares were priced at the same price, making the total amount of shares that are currently priced at 10% of SOPW’s price a total of 135 million.

 

And now we see more news concerning the sale of shares for further funding. Under an agreement that has been executed on September 22 SOPW will sell 41,240,000 shares of its common stock priced at $1.17 per share, which is still well below its current market cap.

 

Still, the price of the company stock is growing and has added another 18.66% to its value in the opening session of this week, while a total of 1.5 million shares changed their owners and generated $2.31 million in dollar volume.

 

Things aren’t looking quite secure at this stage as we have seen some promising stocks crash because of dilution so be sure to do your due diligence before making an investment decision.

Comments 1

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