Vision Industries Corp. (OTC:VIIC) Soars on a Promotion and a Demonstration Contract
18 Nov 2010

A single press release and a free stock promotion are responsible for the two latest jumps up of Vision Industries Corp. (OTC:VIIC) stock price. On Tuesday afternoon, the company got promoted and it announced a contract with the City of Long Beach, California. The share price more than tripled and the trading volume hit its highest value ever.

During yesterday’s trading session VIIC shares also brought a noteworthy profit. The total increase in the closing price was 37.5% and VIIC stock closed the market at $0.22 for a share on the highest trading volume in its history. Nearly 805,000 shares were traded, not breaking the record from the previous day. VIIC promoters did not receive any compensation.

According to the announced contract, Vision Industries entered into an agreement to demonstrate one hydrogen fuel cell/plug-in electric TYRANO™ class 8 on-road truck and one hydrogen fuel cell/plug-in electric zero-emission terminal tractor. Those are products currently produced jointly by Vision and Capacity of Texas. The company will also receive substantial cash contribution to this demonstration project.

Though, even with that cost-sharing, the company’s urgent need of substantially more cash at the end of June is rather pessimistic. Vision Industries has recently switched to a new business model, has no revenues currently and is only spending money without any outlook for a near-term profit. The company has also massive debts and working capital deficiency of over $5.6 million. The cash available was only $25,800, and the subsequent way in which the management raised funds promises to dilute the shareholders.

At the beginning of October, Vision Industries borrowed $300,000 from an investment fund and issued to them a promissory note that is convertible into shares of the company’s common stock at a conversion price of $0.065 any time. Previously, in July this year the company entered into a non-exclusive placement agreement to raise more capital “ in the near future”.

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