Nilam Resources Flags Concern After 1,500% Stock Spike Amid Bitcoin Acquisition Plans
Summary:
Nilam Resources, a micro-cap company, has been flagged as a public concern by the OTC Markets Group following a 1,500% share price surge, after announcing plans to acquire $1.7 billion worth of Bitcoin. The OTC Markets Group has marked Nilam Resources as "Caveat Emptor" or "buyer beware." Doubts have been raised about the feasibility of this move, with some suggesting it's a promotional stunt. Should the purchase be successful, Nilam will hold more Bitcoin than any other publicly listed company in the U.S., save for MicroStrategy.
The small-scale company, Nilam Resources, who recently announced their strategy to secure purchasing of Bitcoin worth $1.7 billion, has been identified as a "cause for public concern" by the OTC Markets Group, in wake of its significant share price spike of 1,500% on Tuesday. The OTC Markets Group, operators of the platform, OTC Pink for trading OTC stocks, currently identifies Nilam Resources (NILA) with a "Caveat Emptor" label — a term indicating potential buyers should be on their guard. According to OTC Markets' own glossary, they attach this label when "there’s a public interest concern with the company, ranging from spam campaigns or questionable stock promotion to known instances of fraudulent activities from the company or their intermediaries, regulatory suspensions, or disruptive corporate behaviour." The OTC list for NILA denotes it as "Shell Risk", warning that the company may likely function as a shell corporation, based on annual fiscal data and other income-related measures. On March 25, Nilam Resources, an investment-holding firm, made an announcement of intent to acquire a company in possession of 24,800 Bitcoin. As part of its plan to secure this Bitcoin, the company purported they will release "preferred stock," which will be set with a "discounted rate relative to current market prices." In just one day, shares soared to a record high of 33 cents each, showing a 1700% elevation from last week's 1.8 cents. Presently, according to OTCMarkets, the firm's market cap amounts to $280 million. But, their ambitious plans have raised eyebrows in the crypto-sphere, with some speculating that this strategy might be a promotional stunt. Bitcoin analysts, and the co-founder of a Web3 firm have echoed this sentiment. However, if Nilam Resources proves successful, they will hold more Bitcoin than any publicly traded company in the U.S., barring MicroStrategy. Ex-CEO of Nilam Resources, Ron McIntyre has expressed skepticism about their new plan, labeling it a "classic pump and dump." He anticipates that there will be an investigation into Nilam Resources by the Financial Industry Regulatory Authority (FINRA). Established as an investment-holding company, Nilam Resources announced in November, 2020 that it will diverge from investments in health and wellness to "frontier tech", including medtech, fintech, and climate tech. As soon as next day, it unveiled its acquisition of TechyTrade, a fintech technology provider.
Published At
3/27/2024 8:49:37 AM
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