Todor Pichurov

Seratosa, Inc. (OTCMKTS:STOA) Surfaces Above Triple Zeroes

by Todor Pichurov May 28, 2015

Over the last couple of sessions the stock of Seratosa, Inc. (OTCMKTS:STOA, STOA message board) managed to pull itself out of the triple-zero bog and closed at $0.0017 per share yesterday. The company shifted over 76 million shares over the last session and stopped another 21% in the green.

Why are traders so excited about STOA at the moment? Hard to tell, really. The company's latest filing is an 8-K that went up on Tuesday. It informs STOA sold a “strategic stake of up to 51%” of its common stock to a private investors for “up to $750,000”. The money will be used to restructure the company. The newly issued shares under the deal will be Rule 144 restricted.

The company's latest quarterly for the three months ended March 2015 contains the following:

  • ZERO in cash
  • $913 thousand in current liabilities
  • $480 thousand in Q1 revenues
  • $9 thousand in Q1 net loss

Even though it's registered as a Delaware company, STOA employs outsourced staff located in offices in China. With zero cash in the bank prior to the announcement made in the 8-K and with having diluted its common stock some 44% within less than two months, STOA has a few red flags about it. Those include the lack of an actual corporate website or a logo.

The company reported having 212 million outstanding shares as of March 27. By May 18 that number was up at 306 million shares. This is without factoring in the shares that will need to be issued under the $750,000 private investment.

Investors may also want to keep in mind that prior to getting to its 306 million shares, STOA did two reverse splits in 2011 and 2013, with the second one taking place to the tune of a 1-for-10,000 ratio.

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1. Guest
May 28, 2015, 11:17AM

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