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Last year the stock of Virtus Oil and Gas Corp (OTCBB:VOIL<\/a>) became the target of of the most massive and widespread pump campaigns. The stock was being touted through two landing pages, email alerts were flying around and even a hard mailer brochure was put into circulation. Some people even received unsolicited phone calls. The artificial hype was so strong that it pushed VOIL<\/a> <\/strong>to the unrealistic high of more than $2.2 per share.<\/p>\n In our articles, however, we warned you that such price ranges could not be sustained for long and those who used caution might have been able to save themselves from a total disaster – in the aftermath of the promotion VOIL<\/a> <\/strong>not only wiped all of its pump-induced gains but it continued to go even lower down the chart. On July 7 the stock hit a new 52-week low of $0.23 per share which is close to 90% below the pump high.<\/p>\n Despite the atrocious chart performance it seems that some investors have not given up on the stock and for the past four sessions VOIL<\/a> <\/strong>has been climbing up the chart moving from an opening price of $0.28 on July 21 to a close at $0.46 on July 24. Is there a reason for the sudden recovery though?<\/p>\n Well, no, there is nothing immediately obvious. The company is still in a terrible financial state finishing the quarter ending May 31 with:<\/p>\n • $61,769 cash and total current assets!!! VOIL<\/a> <\/strong>did manage to secure some fresh funds through a securities purchase agreement under the terms of which they will sell a total of $1,150,000 of senior convertible notes in several tranches. Even with this capital injection VOIL<\/a> <\/strong>simply cannot justify their current market cap of more than $24 million. Not to mention that the notes can turned into common shares at the lesser of 65% from the average of the lowest volume weighted average prices during the twelve consecutive trading days including the conversion date or $0.75 per share.<\/p>\n What could be causing the recent resurgence of the stock is more than likely found in the latest amendment of VOIL<\/a>’s <\/strong>agreement with TJBB for the oil and gas property in Iron County, Utah. According to the new terms of the deal VOIL<\/a> <\/strong>will have to drill a 7,000-foot initial test well. If the company fails to complete the test well by July 31,this year, it will forfeit its interests in the leases. Back in May VOIL<\/a> <\/strong>signed a contract with Energy Drilling LLC to drill the Virtus Lone Pine 34-11-5 Well. With only a couple of days left before the deadline investors might be jumping in in anticipation of some news about VOIL<\/a>’s <\/strong>progress.<\/p>\n
• $773 thousand total current liabilities
• ZERO revenues
• $590 thousand net loss<\/p>\n