U.S. Precious Metals, Inc. (OTCMKTS:USPR) share price collapsed to historical record lows at the beginning of the year registering a historical low at sub-penny level of $0.004. Since then the stock has surged 500% in the last few months climbing to 50-day high of $0.03. Over the last few days volume has been increasing significantly above average registering over 1 million shares trading per day which is far above the average daily volume of about 0.5 million shares.
USPR has 194 million shares outstanding and a 52 week high of $0.20. If shares were to climb and surpass its prior 52-week high, the stock could stand to gain over 566% from its current levels. Gold prices have soared approximately 20% since the beginning of the year and gold mining stocks in general have done extraordinarily well since then. In fact, many junior miners and penny stock gold mining exploration companies like USPR have locked in gains of 300%+, but USPR is definitely one of the leaders when it comes to percentage gains.
USPR recently filed a 8-K form with the SEC and registered a Series B Convertible Preferred Stock. The certificate registration allows the company to create 200,000 shares of the convertible preferred shares. These preferred shares hold much more voting power than common shares and one share is equal to 142.8 voting share rights relative to common stock. In other recent developments, several board members have been resigning which is typically not a good sign for a company.
Effective February 4, 2016, Messrs. Sheldon Baer, David Burney and Daniel Luciano resigned as members of the Company’s Board of Directors. The Company believes that none of the individuals resigned as a result of any disagreement with the Company regarding its operations, policies or practices. Mr. Baer was appointed Chairman of the Company’s Advisory Board and Mr. Luciano will continue to perform legal services to the Company.
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USPR is currently trading at a $6.54 million market valuation. USPR recent developments of several board members resigning does not bode well for the company’s long-term success and will need to replace them if they are to boost investors’ confidence. The rally in gold prices has lifted all boats in the industry, but there will eventually be a shakeout. USPR has had no revenues in the last 5 years, only $0.5 million in assets and over $5 million in outstanding liabilities. Stay tuned for more developments to see if USPR can stage a turn around.
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Disclosure: we hold no position in USPR either long or short and we have not been compensated for this article.