Santo Mining Corp (OTCMKTS:SANP) is a deep sub-penny that seems to drift from one sector to the next as fad and the expediency of the moment dictate. This was a metals mining play when gold was en vogue. But when the green rush hit last year, suddenly this was a cannabis play. Now – you guessed it – SANP is suddenly a crypto play. You can bet this company is none of those things on a deep level.

For whatever its worth, the latest announcement from the company is that it and Chongqing Yuhuan Technology Co., Ltd, AKA “Canoe Pool”, announced they have entered into a Letter of Intent to merge and create Canoe Pool America. Under the terms of the LOI, upon execution of the definitive merger agreements, SANP shall issue to Canoe Pool 150 million shares of preferred stock of SANP, representing approximately 35% of SANP’s post-merger preferred stock, and 50 million additional shares of preferred stock upon achievement of certain Bitcoin Mining technology goals, representing approximately 40% of SANP preferred stock.

Santo Mining Corp (OTCMKTS:SANP) is now doing business as PODWERKS, which is a co-working space for cannabis entrepreneurs in the United States, providing the necessary framework to grow, market, and sell all cannabis-related products.

However, the company’s latest release suggests it is trying to move into the cryptocurrency space as well. We would point out to readers that this has all the red flags one could ever hope to pile together in a single company. Buyer beware, caveat emptor, and all that.

The company states that “Our aim is to create a sustainable and community-driven workspace by providing an affordable, scalable and a safe business environment for our tenants. All PODWERKS spaces will feature three types of pods: 1-Growing pods o Nursery, Production and Drying 2-Office Space pods o Desk space, Wi-Fi, printers, copy machines, meeting rooms, snacks 3-Retail Space pods o Coffee Shop, Hardware Supply Shop, Co-op Shop PODWERKS spaces will be located in urban designated zones permitting the commercial cultivation, and sales of cannabis-related products. Each site will have an average of ten modified steel shipping container pods with an onsite manager overseeing day to day operations. Working with local and state agencies, PODWERKS container pods will comply with all building code requirements to ensure the safety of our tenants. Community is an essential part to PODWERKS mission of Grow for Life. PODWERKS tenants can benefit from a series of social and professional events designed to foster collaboration and create a strong and expansive community. Some of these events will include speaker series, investor panels and local governments outreach, among others.”

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As noted above, this is a major caveat emptor kind of stock, from what we can see. Probably the biggest red flag that there is on the OTC is a tendency to generate plausible pivot press releases in the direction of whatever theme has been working the best in terms of share price momentum. Lately, that has unquestionably been the cryptocurrency theme. The company’s latest press release partnering with Canoe Pool is just such an attempt as we see, and we would stay away. The transaction is expected to be finalized in the next 30 to 45 days and is subject to customary closing conditions.

Franjose Yglesias CEO of SANP stated: “This new group will constitute an excellent platform for growth in the American cryptocurrency market and cryptocurrency mining pool. I’m excited to bring this merger to our shareholders. Both companies complement each other in all the right places. During the next few weeks, we will be evaluating many aspects of this merger, including new directorships to guide the company into the future.”

Additionally, Mr. Li Ang, Chairman of Canoe Pool stated: “Focusing on the American market has always been a part of our plans. Now that we have found the right partner we can more aggressively move towards becoming the number one mining pool with local representation and tech support in the American market. We are excited about the prospects for growth and profits over the next year. We are looking forward to working closely with and forming meaningful relationships as we spread across the American continents.”

The chart shows 1100% tacked on to share pricing for the stock in the past month. Market participants may want to pay attention to this stock. SANP has a history of dramatic rallies. What’s more, the company has benefitted from a jump in recent trading volume to the tune of nearly 660% beyond its prior sustained average level.

Currently trading at a market capitalization of $3.7M, SANP has virtually no cash on the books, which stands against virtually no total current liabilities. SANP is pulling in trailing 12-month revenues of $45K. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling as of its latest reporting period. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $SANP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $SANP, either long or short, and we have not been compensated for this article.