EV Charging USA Inc (OTCMKTS:EVUS) Stunned By Promoters
In January 2010, the public company that we now know as EV Charging USA Inc (OTCMKTS:EVUS) was looking for a business to acquire. It chose Milwaukee Iron Professional Arena Football LLC whose CEO, Andrew Vallozzi, received options to purchase some preferred shares. Less than a year later, however, the merger agreement was unwound and Mr. Vallozzi went on to pursue other business endeavors which eventually led to some legal issues for him.
The public company, on the other hand, was left with no operations and it spent the next few years as a shell. In October 2014, another merger opportunity appeared on the horizon and the people who were then running EVUS decided to take it. A private entity called EV USA Charging Inc was acquired, the corporate name and trading symbol were changed, and the company officially entered the charging stations industry.
Of course, this means that EVUS is no longer a shell which, in turn, should draw in quite a lot more investors. And those investors might be a bit confused after a few minutes of research. According to the latest 10-Q, EVUS is still in the “early stages of our development”, but if you go through the most recent press release, you’ll see that the company is about to enter the “national and international sector”.
So, which is true? Is EVUS an early stage company with an ambitious business plan? Or is it about to become an internationally-recognized player?
We reckon that the financial statement from the end of March should give you a definitive answer. Here’s a snapshot of the most important figures (the numbers are NOT in thousands):
- total assets: $3,296 in cash
- current liabilities: $403,641
- NO revenue since inception
- quarterly net loss: $8,654
Despite the appalling balance sheet, some third parties decided to pay Damn Good Penny Picks and its sister newsletters $25 thousand, and in exchange, the pumpers tried to convince their subscribers that putting their money on the line is a good call. It didn’t work.
Instead of rising, EVUS dropped during yesterday’s session and it lost a quarter of its value in a matter of just six and a half hours. It’s currently sitting at $0.12 and you’re probably wondering if this price can give you a chance to make a dollar or two.
That depends on who you are. If your name is Richard Astrom, for example, you probably won’t be that bothered about the drop. Mr. Astrom was previously at EVUS‘ helm and he has also been involved with a few other penny stocks. He, along with some other people, bought a grand total of 350 Series D Preferred shares at a price of just over $0.07 apiece during a recent private placement. Each Series D share is convertible into 2,000 common ones which means that Mr. Astrom and the rest of the people taking part in the private placement effectively bought 700,000,000 EVUS shares for $25,000.
Even after yesterday’s crash, the profit window for them is still wide open. We’re not sure if this is the case for retail investors, though.