If you look at the statement below, it says they only have 870 532 shares outstanding, which is extremely low. This is why the stock price has experienced such vast intraday spikes as of late. SAEX is another good example of what is possible when a company splits their stock this low. Anything close to 1 million seems to be a magic number
SAEX immediately before it halts.
They also say that 66.7% of the float is controlled by insiders, further reducing the available shares in the secondary markets.
If you do the math, this means there is only 289 887 shares available. Below is a table of the significant shareholders.
Going by their most recent 10-Q, they had very little cash.
Contrast this to their losses, and the situation looks even more dire
S-1A on 5/24/19
S-1A on 5/24/19
S-1A on 6/24/19 You can see in the image below that they added pre funded warrants to the offering. A pre-funded warrant is used to get around a blocker provision. The buyer pays for the warrant upfront, rather then at the time of exercise. You can read more about them here
S-1A on 6/24/19
S-1A on 7/1/19 When the price increased in the secondary markets, they reduced the amount of shares in the S-1
S-1A on 7/3/19
It’s an amazing situation. If you can find a stock with a float as low as this, you should watch it very closely. From our experience, anything under 1 million will almost certainly result in some big percentage gains, but the hard part is catching it before everybody else.
Situations like these don’t come along very often, and when they do, they don’t last long. If you see something like this in the future, don’t wait around, because by the time the price begins to move on any kind of measurable volume, it will usually have spiked by double digit percentage points, like what happened with SAEX.