Borislav Tonev

Carolco Pictures Inc (OTCMKTS:CRCO) is Back Down

by Borislav Tonev February 8, 2016

Back in January 2015, when a public OTC company called Brick Top Productions changed its name to Carolco Pictures Inc (OTCMKTS:CRCO, CRCO message board), many people triumphantly announced that Mario Kassar, one of the masterminds behind blockbuster movies like The Terminator and Total Recall, is back. Mr. Kassar has indeed been involved in the production of some of Hollywood's most prominent action flicks, and when Carolco was resurrected, he did take a seat as Chairman of the Board. Apparently, however, he no longer wants to be back. Not as part of CRCO, anyway.

Shortly after the closing bell on February 3, the company announced that Mr. Kassar has resigned from all of his positions and gave no further details on the reasons for this action. The effects on the chart are pretty obvious.

Two consecutive red sessions on Wednesday and Thursday practically obliterated the sudden and unexpected gains achieved on February 2, and although CRCO appeared to be poised for a bounce on Friday, it once again failed to reach a green close. After a few wild intraday swings and a dollar volume of over $80 thousand, CRCO closed the week with a price of $0.0015 – about 1.3% in the red.

The company's future is now in the hands of Tarek Kirschen, CRCO's new CEO and controlling shareholder, and it's pretty clear that investors aren't entirely sure if they can trust him. That's not really too much of a shock considering the fact that a person by the same name was once at the helm of a penny stock enterprise called Merchantonline.com Inc. (traded under the MRTO symbol) whose path was cut short by a bankruptcy proceedings. Nobody can say for sure whether Mr. Kirschen from MRTO and Mr. Kirschen from CRCO are one and the same person, but the coincidence in the names might put some people off.

Whatever the case, Mr. Kirschen from CRCO has a tall order convincing investors that Carolco's future is bright. Quite apart from the fact that the company's results are somewhat underwhelming, CRCO has shown that it tends to rely on convertible debt in order to fund its operations.

As is often the case in Pennyland, the discounts range from 39% to 50% and in light of the recently raised A/S count, we won't be too surprised if the note holders decide that it's time to take advantage of those discounts.

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