Todor Pichurov

Pershing Gold Corp. (OTCMKTS:PGLC) Slips Post Annual Report

by Todor Pichurov March 12, 2015

Yesterday Pershing Gold Corp. (OTCMKTS:PGLC, PGLC message board) closed red again, for the fourth time in a row. The closing bell saw PGLC stop at $0.345 per share after 761 thousand shares changed hands over the session. This red streak started when the company filed its annual report for 2014 on March 5.

Prior to filing its 10-K, PGLC announced yet another record in high concentrations in its Relief Canyon mine. On March 3 the company trumped its previous 2.24 and 2.57 ounces per tonne with a PR stating a new intercept has been found, with 3.61 ounces per tonne. The news pushed PGLC back up to $0.40 per share but then the 10-K came out.

The report's financial section, in brief, was as follows:

  • $15.1 million in cash
  • $41 million in total assets
  • $1.5 million in total liabilities
  • zero in annual revenues
  • $16.4 million in net loss

The company also further detailed its plans to execute a reverse split of its common stock. PGLC has applied for listing on the NASDAQ. Among a number of requirements the company will need to meet, the most obvious issue at the moment is its share price. A shareholder meeting in early December extended the period in which the board can effect a reverse split by 12 months. The ratios for the RS are set to be no less than 1-for-4 and no more than 1-for-25, equaling a decrease of outstanding common shares between 4 and 25 times.

Reverse splits on the OTC usually send investors cringing but PGLC is planning the split in order to uplist and ensure its share price is high enough even after a potential post-split hiccup. The usual scenario where the company is doing the RS just so it can pump more shares for debt does not really apply here, as PGLC has 355 million common shares issued out of an authorized cap of 800 million.

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