Borislav Tonev

Gold Mining USA Inc (OTCMKTS:GMUI) Props Itself Up Again

by Borislav Tonev February 8, 2016

Gold Mining USA Inc (OTCMKTS:GMUI, GMUI message board) popped up on investors radars back in June 2014. On Friday, it managed to claw its way back to the list of the most heavily traded penny stocks again. Let's see what has changed over the last year and a half.

Well, during its last volume spike, the ticker managed to rack up a dollar volume of a whopping $700 thousand. At the end of last week, however, despite shifting more than thirty times the thirty-day average, it only reached a dollar volume of around $70 thousand.

When it experienced a 20% crash on June 3, 2014, GMUI was left with a price of just over $1 per share. By contrast, on Friday, the stock gained 20%, but despite this, it stopped at just $0.10.

Overall, GMUI hasn't really been the best investment out there. A point proven by the figures in the latest financial report:

  • NO cash or revenues
  • current assets: $9 thousand
  • total liabilities: $67 thousand
  • 9-month net loss: $34 thousand

Apparently, the members of the management team realized that investors have lost their patience and now, GMUI is on a mission to regain the market's trust.

In December, the company announced that it has inked a letter of intent for the acquisition of Savannah Senior Living Resorts in Australia. Maurice Byrne, GMUI's CEO, described the revenue generated by the future subsidiary as “attractive enough”, and by the looks of things, the company is getting closer and closer to adding it to its balance sheet. At the end of last month, GMUI announced that a Costa Rican insurance company has given its preliminary approval for the issuance of a financial guarantee bond for up to $30 million which should make the investors funding the deal feel safer.

Sounds good, but is it really enough of a reason to put your money on the line?

That is for you to decide. Don't forget to read through the latest report in its entirety, though. If you do, you'll see that after defaulting on a promissory note, GMUI renegotiated the terms of the said note and reduced the conversion rate from $0.007 per share to par value ($0.0001).

You'll also see that between September 30 and January 25, the number of issued and outstanding shares grew from just under 61.6 million to a little over 64.6 million. What you won't see is who got the newly printed shares and why. You can thank the alternative reporting standards for this.

Comments 1

1. Guest
April 11, 2016, 11:37AM

Quotes Healthcare would be the right sector for GMUI to invest in.

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