Pumpers Fail to Lift Eventure Interactive Inc (OTCBB:EVTI) Off the Ground
The relationship between Eventure Interactive Inc (OTCBB:EVTI) and the promoters has been a long and difficult one. The first truly active promotional campaign took place in October 2014 when the ticker was hovering just above the $0.40 per share mark. The hype coming from the emails did manage to draw some attention to the stock, but shortly after, momentum died down and EVTI started tumbling towards the ground. Several more attempts were made to bring the ticker back to life over the following months, but they all failed and the stock slowly drifted into oblivion.
The historical performance is not that important when money is at play, though, so when Stellar Media Group LLC (the owners of Damn Good Penny Picks as well as a few other promotional outfits) received $20 thousand, they were more than happy to send out some alerts saying that EVTI “can’t get any more attractive”. Stock Cabin pocketed a more modest $7 thousand, but they too jumped on the bandwagon.
Sadly, all the money was apparently spent in vain because despite the promotional emails, EVTI refused to give investors a chance for a profit. It did finish Tuesday’s session in the green, but it was quick to wipe out all the gains yesterday when it lost about 14% and finished the day with a price of just over $0.05 per share. So, not really what the pumpers expected, but did the drop surprise anybody else?
If you do some research on the company, you’ll see that EVTI can get more attractive. In fact, it will have to work hard to get any less attractive. The 10-Q for the first quarter, for example, looks like this:
- cash: $1,512
- current assets: $16,708
- current liabilities: $2,251,422
- NO revenues since inception
- quarterly net loss: $4,349,990
The balance sheet is in a pretty terrible shape and it can’t be fixed because there are no profits. There are no profits because there are no revenues. And the people who wrote the 10-Q “do not expect to achieve revenues until in or about the second quarter of 2016”. That’s around twelve months from now which, you have to agree, is an awful lot of time.
And during those twelve months, the ticker will be under threat from some quite serious dilution. There were a number of convertible notes at the end of the first quarter and all of them can be turned into stock at discounts that, in some cases, reach 50%. Some recent actions suggested that EVTI is bracing itself for a massive wave of conversion. The number of authorized shares was increased to 1 billion at the end of May and a few days later, Gannon Giguiere, EVTI‘s President, received 1 million Series A Super-Voting Preferred shares which effectively gave him control over the company.
Based on this, you’d be forgiven for thinking that EVTI‘s printing press is about to start churning out millions upon millions of discounted shares. Apparently, however, the management team want to stop this from happening.
On Monday, they announced that they have secured a $1.5 million equity financing. Not a whole lot was provided in terms of details, but the company did say that the money will be used both for working capital purposes and for extinguishing convertible notes. Stopping the dilution while it’s still in its infancy is definitely good news and EVTI‘s credibility will be boosted if its SEC filings don’t contain the names of the toxic debt providers listed in the press release because if you take the time to do some research, you’ll see that their reputation is not exactly spotless. The thing is, EVTI‘s new lender doesn’t have a clean reputation as well. In fact, it doesn’t have any reputation whatsoever.
The entity that will pour $1.5 million into the company is called Rider Capital Corporation and its internet presence outside Monday’s press release is all but non-existent. Rider does have a website, but information on it is scarce (putting it mildly). In addition to this, the domain for this website was registered just under a month ago.
So, while EVTI‘s management team is trying to convince you that you’ll be in safe hands, we still reckon that careful consideration of all the risks is important. Especially when the pumpers are around.
