The last couple of weeks saw some turbulent sessions for Mena Hydrocarbons, Inc. (CVE:MNH), (OTCMKTS:SKNAF). The company’s share price bounced significantly in mid-July, then edged even higher after some minor setbacks along the way.
Yesterday the stock closed flat. MNH moved 1.37 million shares but the price remained completely level throughout the session. The stillness in price action despite the above-average share volume could be attributable to the latest press announcement that the company published.
On Jul 21 MHN informed that the company started negotiations for a possible sale or merger with a publicly traded entity. The other company in question is described as an international oil and gas enterprise. The potential deal involves assets located in Egypt. MNH has full ownership of the Lagia oil field in the same country.
Here is what MNH published in its latest financial report dated March 2014:
- $851 thousand in cash and cash equivalents
- $7.6 million in total assets
- $6.9 million in total current liabilities
- $81 thousand in production revenues for Jan-Mar 2014
- $189 thousand in loss for Jan-Mar 2014
The company’s report further states that as of March 2014 MNH had a working capital deficit of $6 million and the situation of the market has significantly reduced its ability to access capital. Further news related to the Jul 21 announcement of negotiations could send MNH in either direction.