HIGH PERFORMANCE (OTCMKTS:TBEV) recorded a total disastrous session on Tuesday as it declined more than 47% to close the day on $0.001. It extended the decline in yesterday’s trading session and plunged another 10% to close the trading session at $0.00090. Throughout the session on Tuesday, the unprecedented number of almost 1.08 billion shares made their way into the market. In just three trading sessions, TBEV has eroded more than 71% of its value.
A couple of weeks ago, High Performance got investors thrilled by reporting the successful completion of test run of its Sports beverages line. It indicated that in coming period the company may start generating revenues.
However, there are many problems that need thorough attention of investors. For the quarter completed April 30, 2015 High Performance reported $308,010 in cash and total assets. The reported revenue was zero, total liabilities $4.12 million and loss from operations amounted to $283,000. A major part of the total liabilities consists of convertible debt, derivative liability of $1.56 million and $2.18 million in convertible notes.
The dilution of High Performance common stock through the debt conversion at discounted prices has been affecting adversely stock for quite a while. In February 2015, the company went for a 1-for-10 reverse split following which the company was left with nearly 212 million outstanding shares in March 2015.
Three months later, the outstanding shares count stood at 2.25 billion. In order to contain the future issuance of its shares, high Performance decided to increase the authorized amount to five billion shares from 2.5 billion. There appears no limit to dilution and it could continue to impact the positive momentum of the stock.
HIGH PERFORMANCE (OTCMKTS:TBEV) ended the last trading session with a loss of 10%. This price action took the total loss incurred in the last 3 sessions to almost 60% and also took the price not very far away from the 52 week low of $0.0001. The volume for the day surged to 493 million against the daily average of 231 million, reflecting the intensity of the selling pressure. The major trend reversal level is $0.003, which has turned into a strong resistance from being a support previously. On the lower side, some support can be expected from the band of $0.0005-$0.0007.