KAT Exploration Inc. (PINK:KATX, KATX message board) stepped back again yesterday from its recent appreciation. The uptrend appears to be weakening on the declining trading activity, despite ambitious management plans and newsletter promoting.
The under $1 stock of the mineral exploration company continued declining by 4.55% and closed at $0.21. Trading activity dropped down as well, as the PRs had a silent period for almost a month. On Tuesday however, they came out again with a press release, announcing that KAT shareholders will receive one restricted share of Bella Viaggio, Inc.(OTC:BVIG) for each four of their KATX shares. Further, KAT says it has paid $305,000 in cash for Bella Viaggio.
Being another perfect promoting candidate with no material revenues or assets to date, Bella Viaggio disclosed end of last week to have purchased 100% of KAT Handcamp gold property, and KAT is to receive 161 million shares of Bella’s common stock upon the terms of the deal. This might happen, if the company increases the number of its authorized shares to issue the remaining 96 million. According to the company’s latest quarter results filed, Bella had end of March only common stock outstanding, but this could have changed since then without any need to announce it.
Thus, investors should decide for themselves how trustworthy the promised share distribution sounds and even if actually received, how much are such shares worth. But regardless of credibility, on Tuesday KATX came into the weekly Top 10 List of newsletter promoters and in investor forums exorbitant posts about expected drilling activities to start any moment and a coming “golden summer rally” will not cease.
Unlike Bella, KAT Exploration does not file any reliable information about their business, though plans to get this resolved in the future should be mentioned. In Tuesday’s press release, Ken Stead,President and CEO, disclosed intentions to merge Bella Viaggio and KAT Exploration into an entity named KAT Gold Holdings Corporation, which would mean a step forward for KAT to move out from the pink sheets into a more transparent market.
