Virtual Sourcing Inc (OTCMKTS:PGCX) Is A Low Float Runner

Today, we need to talk about a new name that has been talked about a lot recently on Wall Street.It is called Virtual Sourcing Inc (OTCMKTS:PGCX), which focuses on fiberglass recycling and manufactured products.We are discussing this company because its share price has spiked up astonishingly very recently.From trading at the level of $0.0004, the share price has jumped to touch $0.0038 level.But, the most significant is not that.We believe that the most important is that the market interest in the stock has increased a lot, as the amount of shares that changed hands last week increased. More than 150 million shares were traded some days. Have a look at it and form your own opinion before we provide more details: 1 month chart for PGCX 1 month chart for PGCXBusinessPGCX was founded on July 30, 1999 and is headquartered in Washington. After the acquisition of 80% stake in Allied Recycling Corp in April 2013, the company entered into the recycling business.We could read in the last annual report that more transactions can be expected:

"The Company is seeking acquisition candidates who participate in the recycling of paper, plastics, composites and the manufacturers, distributors or marketers of products derived from recycled materials." Source

We need to be alert on the next announcements.If it is true that growth is being driven by acquisition of other businesses, then every time a new acquisition is communicated, the market will push up the share price.Subscribe to our email distribution list if you don't have time to follow the announcements.The last information received in the market seems to be new financing for new acquisitions. This is what seems to be moving up the share price.Recent DevelopmentsNothing was reported on the OTC Markets profile of the company. Therefore, some market participants are unable to explain the recent share price move.The new information was received by GLOBE NEWSWIRE on November 16, 2017. According to what we could read, Virtual Sourcing, Inc. has received "an increase up to $25 million in acquisition financing in preparation for additional acquisitions currently being reviewed." The current total engagement package was said to be worth $50,000,000.New financing means money to acquire other business as well as money to boost growth. Market participants know very well that growth will be appreciated by shareholders. Thus, the share price was pushed up. So far so good.What else?After remaining calm in the market for a long period, it was communicated that PGCX "is continuing in its quest to grow by acquisition and joint ventures." More specifically, it was said that the company is negotiating for "a substantial acquisition in the fiberglass manufacturing sector and potential joint venture partners in the fiberglass manufacturing industry." We believe that these are the words that made the market excited.We again encourage readers to follow this company, as if more news arrive about this transaction, the share price could continue to rise.When is the acquisition going to be announced?The company expects the acquisition to close by mid-December. The auditors were said to be working and expect the audit report to be released "by the end of the first week of December."But, there is more.The company said that a second acquisition could be executed in Spring. If a new business is acquired, the capital formation package would rise to approximately $75 million. Thus, the total funding will be $100 million.What's creating the share price volatility? - It is a low float runnerIn the following share capital statistics, the reader can see that the float is extremely low:Authorized Shares977,000,000a/o Nov 16, 2017Outstanding Shares331,751,739a/o Nov 16, 2017-Restricted81,035,420a/o Nov 16, 2017-Unrestricted250,716,319a/o Nov 16, 2017Held at DTCNot AvailableFloat21,853,264a/o Dec 31, 2013SourceThis means that the liquidity in the market is reduced and big market orders could create a lot of share price volatility.We believe that when the company announced the new financing received, many market participants tried to acquire shares. They sent market orders and created a share price spike. The low float contributed to make the share price volatility even larger.What are we expecting now? - ConclusionWith very little cash on the balance sheet and 0.7 million in total liabilities, we believe that $25 million in financing will help shape the company.We need to note that last quarterly report is old and we don't know the current state of the financials. Thus, we expect the company to release its financial figures soon.Many market participants will need to check the current financial situation and we believe that issuing that report will benefit PGCX and its share price.We will keep informing about any new development from the part of the company, as more news could again push the share price. We encourage readers to do the same, as new opportunities could arise.To sum up, check out this name as it is in play again!We will be updating our subscribers as soon as we know more. For the latest updates on PGCX, sign up below!Image courtesy of Ron Lute via FlickrDisclosure: We have no position in PGCX and have not been compensated for this article.