SNPK – Sunspeak Ventures, Inc. – Is the stock due for a fall?
SNPK, the hottest penny stock of the month may be getting ready for a drop.
Sunspeak Ventures, Inc. (Pinksheets:SNPK)
One of the hottest penny stocks in the past few weeks had a decent day, which came as a surprise after Friday’s News announcement. In that release the Company stated that they have initiated a review, through special outside counsel, in connection with the high volume of trading and price rise in its common shares on the OTC Bulletin Board. In addition the Company mentioned that FINRA has commenced an inquiry into the trading activity. FINRA (for those that don’t know) is the largest independent regulator for all securities firms doing business in the United States, overseeing brokerage firms branch offices and registered securities representatives.
So why didn’t the stock collaspe?
Well, the Company actually announced a few of the “rumored” press releases that the penny stock community has been looking forward to. First off SNPK announced that they have entered into an agreement with former All-Star player and professional basketball coach, Paul Silas, as national spokesperson for Clotamin. Clotamin is the Company’s OTC multivitamin product designed for use by patients on Warfarin and other anticoagulants (blood thinners). Coach Silas is currently a professional basketball head coach and nominee for the Naismith Basketball Hall of Fame Class of 2012. Secondly Sunspeak announced that Clotamin will soon be available at Sedano’s Supermarkets across South and Central Florida.
Two good announcements right?
Perhaps. Time will soon tell. If one takes the time to peel back the layers on this deal however there are some concerns.
Seeing a pink sheet stock trade over $60 million in value in 4 hours is always a concern. Even more so when the Company had no trading history prior to March 8. Did we mention before February it was a oil and gas deal?
A big concern we have at the Shark lies in the Clotamin deal that the Company announced in it’s 8k filing on 2-13-2012. From the filing:
“On February 13, 2012, Sunpeaks Ventures, Inc., a Nevada corporation entered into that certain Share Exchange Agreement (the “Share Exchange Agreement”) with Healthcare Distribution Specialists LLC, a Delaware limited liability company, (“HDS”), Mackie Barch, the mmanaging member of HDS, who presently owns 100% of the issued and outstanding membership interests in HDS, and Scott Beaudette, the majority shareholder of the Company. Pursuant to the terms and conditions of the Share Exchange Agreement, HDS shall exchange 100% of the outstanding membership interests in HDS in exchange for: (i) two hundred million (200,000,000) newly-issued restricted shares of the Company’s common stock, par value $0.001 per share and (ii) three million (3,000,000) newly-issued restricted shares of the Company’s Class A Preferred Stock, par value $0.001 per share. The exchange will result in HDS becoming a wholly-owned subsidiary of the Company.”
These types of agreements are sometimes used by a private Company to take over what is called a “shell”. A shell is a public company that is basically dormant, like Sunspeak was. Nothing unusual here, these types of transaction occur all the time. What is quite strage is the amount of activity that we have seen in the Company after this “takeover”.
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