Borislav Tonev

Kona Gold Solution (OTCMKTS:KGKG) Gets an Adrenaline Rush

by Borislav Tonev March 2, 2016

We've gone through Kona Gold Solution (OTCMKTS:KGKG)'s latest financial report and we can tell you that the members of the management team don't seem to shy away from setting the bar high. At one point, for example they say that KGKGis positioning itself to be a premier lifestyle brand”.

There's nothing wrong with making such claims. The problem lies with the fact that they aren't really in line with the figures presented in the same exact report. Here's what KGKG's financials looked like at the end of last year:

  • current assets: $87 thousand
  • total liabilities: $81 thousand
  • NO revenue
  • quarterly net loss: $20 thousand

KGKG wasn't really in a brilliant shape a couple of months ago, but a few recent press releases have made quite a few people think that things are about to change. First, on January 19, KGKG announced that a substantial order for the company's energy drinks has been placed and that shipments should start within the next thirty days. Yesterday, they said that the products are already available through Amazon.

The market's reaction to yesterday's press release in particular was rather profound. In a matter of six and a half hours investors traded more than 4.4 million shares and they pushed the stock 350% up for a close of $0.027 per share. In their excitement, however, traders forgot about a few important pieces of information.

They forgot, for example that not that long ago, KGKG was called Union Equity Inc and that in 2012, the company issued some shares at rates that went as low as $0.00001 per share. Of course, plenty of things have changed since then. For one, six and a half months ago, the stock went through a 1 for 1,500 reverse split. There are still some questions, though.

The last reported O/S count prior to the split sits at just under 6.25 billion. Put the split into the equation and you should end up with a figure of around 4.1 million. Yet according to the latest report, seven days ago, the number of issued and outstanding shares stood at just under 76 million.

Unfortunately, the report doesn't say who got the newly printed shares and why. What it does contain instead is an unnecessarily long “business plan” that is full of materials copied straight from Wikipedia and various news articles. Not exactly the thing a “premier lifestyle brand” normally does.

Comments 0

Type the characters that you see in the box (5 characters).