Furiously promoted during the first half of 2015, investors in VMRI quickly and collectively lost several millions of dollars courtesy of the pump as the share price dropped to 20 cents from its lofty highs of $3.40 achieved during the heyday of the promotion. Much of the disinterest in shares during the second half of 2015 and early 2016 should be attributed to the cessation of promotion efforts due to the difficulty in getting VMRI's S-1 Registration Statement of September 2, 2015 deemed effective. SEC questions and concerns required the filing of four amendments. Since the 14,839,270 shares to be registered could not be dumped until the registration was at long last deemed effective on March 30, 2016, promotions would have have served no purpose.
|VMRI Chart for 2015|
» Related: VMRI Offers Lesson in the Perils of High Priced Pump and Dump Schemes
» Related: VMRI Past Performances
For all its talk, VMRI has yet to ring the register, having never earned a single penny. The company also spends very little money, so we are left to wonder how much of an operation there really is. And yet, this company with practically nothing but a CEO with a gift for oratory, has been deemed worthy of a market cap of over $130 million. That's $130 million worth of air. Sooner or later the law of gravity will take effect. We're guessing sooner.
On July 6, it became evident that VMRI was paying for the stock pumping itself when some outfit named "Small Cap Sentinel" issued a press release touting shares. We draw your attention to the disclaimer at the bottom of the press release.
$135,000 was paid for this pump piece "on behalf of Valmie Resources". This should cause prospective bag holders to ask the following questions; (1) Where is $135,000 coming from--VMRI doesn't have it--and what is VMRI giving up for it; and, (2) Why is VMRI pumping its own stock? The answer to the latter is clearly found within a pair of S-1 Registration Statements filed by the company, the most recent occurring a week prior to the Sentinel's press release.
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The private placement bonanza was not Crystal Resource Corp.'s only dealing with VMRI. The company owns several notes issued by the company as detailed in this Form 10-Q filing.
But who or what is Crystal Resource Corp.? According to the Wyoming Secretary of State it is a dissolved corporation run by Gerald Pitts. First registered on April 21, 2014, the corporation was recently deemed inactive for tax concerns, presumably the failure to file returns or pay obligations. With a cash bonanza soon to be on the books for Crystal, we hope that Crystal/Mr. Pitts will do the right thing and file and pay taxes.
The June 30th S-1 Registration Statement represents 2016's second attempt from VMRI to enable insiders to dump stock. On March 30th, the aformentioned S-1 initially filed on September 2, 2015 was finally deemed effective. A good portion of the 14,839,270 shares cleared for sale, including 10 million shares owned by Tuverga Finance Ltd., can be assumed to have been dumped during the run up of the last couple of months. With much of that stock presumably left unsold and additional shares soon to be freed from restriction courtesy of the latest S-1 filing, the July 6th press release is surely meant to buoy VMRI's share price and trading volume and create additional bag holders.