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To say that the stock of Minerco Resources Inc (OTCMKTS:MINE<\/a>) has not been performing well would be an understatement. The ticker has been dropping lower and lower down the chart for nearly 7 months now. Last Friday it closed at $0.0027, price that is more than 77% lower than the high of $0.012 posted in mid-January. Although the picture was already looking rather grim yesterday things got a whole lot worse.<\/p>\n After nearly two months of silence yesterday MINE<\/a><\/strong> issued a new press release announcing several rather important things. The company plans to change its name and the name of its Level 5 Beverage Co. to Minerco Inc and Athena Brands, respectively. A letter from the Chairman further detailed the company’s plans but what stood out the most was MINE<\/a>‘s <\/strong>decision to implement a 1-for-100 reverse split<\/strong>. <\/p>\n The reaction from the market was immediate – less than three hours before the end of the session MINE<\/a>‘s <\/strong>stock plummeted downwards registering a new 52-week low of $0.0011. Ultimately the company finished the session at $0.0015 for a loss of over 44%. More than 148 million shares got dumped during the session, which is 10 times higher than the 14.7 million shares from the previous session and close to 13 times higher than the monthly average.<\/p>\n MINE<\/a><\/strong> definitely needed to do something about their bloated share structure – as of June 19 the company had 3,496,235,155 outstanding shares<\/strong> out of the 3.5 billion authorized. After the reverse split there should be around 34.9 million outstanding shares while simultaneously MINE<\/a><\/strong> will also be reducing their authorized amount to 250 million shares. According to the Schedule 14C filing the split will be performed before the end of the year.<\/p>\n The reduced O\/S count may allow the owners of MINE<\/a>‘s <\/strong>convertible notes to start turning them into common shares thus severely diluting the common stock. As of April 30 the company had $69 thousand in convertible debt and $161 thousand in derivative liabilities. In addition, on June 2 they sold a $250 thousand note that can be converted at a 50% discount from the lowest day during the preceding 20 days before conversion.<\/p>\n MINE<\/a>‘s <\/strong>financial results also fail to inspire much confidence. The company finished the quarter ended April 30 with less than $100 thousand cash, working capital deficit of $3.4 million, gross loss of close to $123 thousand (this means that in order to generate $614 thousand in sales MINE<\/a><\/strong> incurred cost of goods sold of $737 thousand), and net loss of $748 thousand.<\/p>\n