I get a lot of questions about Vinergy Resources (VIN.C), the mining shell-to-weed-lab deal that lit things up back in February, before an aborted deal for a European greenhouse and commercial plant export business fell through, ripping the stock back to a more humble level.
That load of bad luck was followed by more, when the CSE halted the stock while it went through a change of business process.
These processes are a drag at the best of times. The due diligence that has to be done on the deal warranting the COB is not small, and the exchange wants to know everything, confirm everything, get everything in legalese and triplicate and ready for action.
So here’s what the chart looks like:
Yep, that’s a big long empty space that has coincided with the largest lift in weed stocks since 2014, when they were similarly nutso as now.
So for Vinergy stock holders, that’s sucked. To not be able to get at your money while who knows who processes who knows what for who knows how long is pretty much the worst thing for an investor, outside of accidentally investing in coal.
We’ve been told several times that Vinergy is going to be back ‘any day now’, and that hasn’t happened yet, so today we talked to some of the folks behind the deal and called them on the false starts,
What we were told is, they had given all their answers to the exchange quite some time ago, got clarification questions the same day, answered those, and then nothing until a few days ago when more questions were raised.
The answers to those, we’re told, have been submitted, and the feeling is we’re near the home stretch. But, having learned their lesson in offering timelines in the past, only for those timelines to be missed, the deal guys aren’t doing that again.
What they are going to do, we’re told, is put out a corporate update either late this week or early next week, to let folks know what the status is, what’s coming, and that something is actually happening. We look forward to that as… I still hold VIN stock.
<sad face>
One thing I am told is that, when the stock goes live once more, it’ll be on the back of a qualifying transaction that they expect will be interesting enough to entice a lot of that now-held money to stick around.
I think we’re likely to see a sell-off first. Dudes with money stuck in there for eight months will want it back. So hold your trigger finger and find a nice quiet place to buy in for value, if you have the notion.
— Chris Parry
FULL DISCLOSURE: Vinergy Resources is an Equity.Guru marketing client, though their program is on hold until they go live once more. The author owns stock in the company.