Dragni Dragnev

Minerco Resources Inc. (OTCMKTS:MINE) Crashes In Spite Of Acquisition Announcements

by Dragni Dragnev March 26, 2015

Yesterday was certainly not a good day for Minerco Resources Inc. (OTCMKTS:MINE, MINE message board) – company's share prices ended up dropping 15.38% on a dollar volume of nearly $300 thousand. What's worse is the fact that, by the look of things, today will be no better in spite of the press release MINE published.

As per the announcement, MINE's wholly owned subsidiary Level 5 Beverage Company, Inc. has acquired an additional 21% of Avanzar Sales and Distribution, LLC, which brings its equity stake in Avanzar to 51%. MINE's CEO Scott Vanis stated that this is part of the company's plan to create investor value through “acquiring cash flowing assets”.

Investors were obviously not too impressed by the news. Maybe their reaction has something to do with the fact that MINE will have to pay “$400,000 in structured payments throughout 2015” in return for this acquisition. One could certainly understand why the news that the company's $3.4 million current liabilities would grow even further could fail to halt the ticker's descent.

Evidently it would take more than that to get MINE back into the investor's good graces. How much more, whether and when will MINE deliver remains to be seen.

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