Dragni Dragnev

Gold Lakes Corp. (OTCMKTS:GLLK) Is Getting Hot

by Dragni Dragnev July 1, 2016

Gold Lakes Corp. (OTCMKTS:GLLK) added another 24.71% to its market cap in yesterday’s trading session, jumping all the way to the dollar mark and then some. So what’s wrong with this picture?

Ler’s start at the top and work our way down. The company just announced that it has made an acquisition – which could potentially be good for business. However, since we don’t know much about the entoitty that’s being acquired, there’s no real way to know that this is the case. This renders the news that was GLLK’s driving force meaningless – which is not a good start.

Another dead giveaway that something is wrong with GLLK that investors should definitely note can be found on the company’s OTC Markets profile page. It turns out that the company performed a horrendous 1 for 200 reverse split at the end of 2015.

Things only get worse if you dig deeper in the company’s financial reports, with the latest one looking as ugly as this:

  • Cash - $14 thousand
  • Total Current Assets - $77 thousand
  • Total Current Liabilities - $1 million
  • NO REVENUES
  • NET LOSS - $655 thousand

Those numbers are thoroughly uninspiring, but hold on to your hats, because the deeper you dig, the worse it gets.

Investors are advised to take a good long look at the section of the report that describes the company’s convertible notes issued and outstanding. Punching the numbers into a calculator reveals that GLLK currently has an aggregate of approximately $540 thousand in of convertible debt, all of which is „convertible into shares of common stock of the Company at any time at a rate of 50% of the lowest trading price of the shares over the previous 20-day trading period“.

All of these facts should give investors some idea as to what GLLK is on about and how to proceed with regard to the ticker.

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