FNRC explodes on the OTCBB!
Update: FNRC made an explosive move up last year to highs over $0.50 where the stock traded massive volume on the back of aggressive stock promotion. Since then the stock has continued to drop and currently trades well below a penny. Bottom bounce players are waiting for a sign that momentum has reversed.
1st NRG Corp. (PINK: FNRC) moved to a high of $0.58 at the end of September and failed to take out the $0.56 on the alerts from several online newsletters. Since then the stock has been weak barely holding on to $0.40 here. Investors who bought in on the alert are wondering if the stock can regain its previous highs.
According to a recent pr 1st NRG Corp. is an exploration and production company headquartered in Denver, Colorado. The Company currently holds natural gas (CBM) assets in the Powder River Basin of Wyoming. They own working interests in producing and prospective CBM wells in the Clabaugh Ranch Field, a development of 6,025 gross acres in the Powder River Basin in northeast Wyoming. The Powder River Basin is a major source of coal bed methane – clean natural gas. They are expanding our activities into unconventional shale potential which includes 1,370 acres in the Niobrara Shale in Western Nebraska and 7,150 acres the Utica Shale in Eastern Ohio.
On October 31 1st NRG Corp announced that they have executed a $7,000,000 financing facility. The facility will allow the Company to draw in one or multiple tranches as agreed to between the lender and the Company. The Note will mature in three years and will bear interest at 8%. Any outstanding amounts due under the Note may be converted at maturity into the Company's common stock at the average of the lowest bid for the ten days prior to conversion.
Mr. Kevin Norris, CEO, said, "This facility should enable the Company to initiate development on its core properties in the Powder River Basin, the Utica Shale in Ohio and the Niobrara Shale in Nebraska."
Conclusion: Currently trading at a market valuation of just under $10 million FNRC is a shell that has been around for years under a number of different incarnations. As usual the company is short on any substance or fundamentals and long on hype. Currently being promoted by newsletters these types of stocks do not usually do so well over the longer term.
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