Steampunk Wizards Inc (OTCMKTS:SPWZ) Comes Out To Play

Steampunk Wizards Inc (OTCMKTS:SPWZ) is a relatively unknown OTC ticker. In fact, up until a couple of weeks ago, nobody had even heard about it. Despite this, it seems to be performing rather well.

In fact, in a matter of less than ten days, the stock managed to gain a remarkable 26%. By the looks of things, more and more people are starting to pay close attention. During yesterday’s session, for example, investors traded more than 104 thousand shares which brought the dollar volume to a breath under $175 thousand.

There certainly are investors who believe that SPWZ can succeed. They’re not the only ones. A few articles on different websites appeared a few weeks ago and they all talk about how SPWZ can make an impact on the mobile gaming business. They even compare the small Malta-based game developer to some of the industry leaders like King Digital Entertainment PLC (NYSE:KING) and Zynga Inc (NASDAQ:ZNGA). Can SPWZ really… err… play with the big boys, though?

In December of 2014, Steampunk Wizards Ltd launched their first game – Bungee Mummy: King’s Escape and last week, they released another headline under the same franchise. There are some positive reviews and there are some negative ones, but it’s fair to say that, at least for the time being, the games aren’t really causing enough stir to propel the company into the higher echelons of the industry.

That’s not the biggest problem, though. The biggest problem lies with the fact that the investors who are putting their money on the line at the moment are basically shooting in the dark.

Steampunk Wizards Ltd. is actually a private entity that entered into a share exchange agreement with SPWZ, the public company whose stock is listed on the OTC Markets, on July 15. The public enterprise filed an 8-K filing and it later issued a press release saying that the deal is supposed to be closed on or before August 7. Right now, two weeks later, we have yet to see a press release or an SEC filing confirming the closing of the deal. There are no financial statements for the surviving entity, either.

We’re not sure if the people trading the 10,080,000 shares that comprise SPWZ‘s float are aware of that. We’re not sure if they know how this float came to be, either. Luckily for them, we did the research, and we’ll now let them know.

It all happened a couple of years ago. The public entity that we now know as SPWZ was called Freedom Petroleum Inc. and it was trying to go public. In order to do that, it offered 35,000,000 shares at $0.0015 apiece to the public. Despite the affordable price, Freedom Petroleum managed to sell only 25,200,000 shares, but that was enough for the offering to be declared successful and the company received a ticker symbol (FPET).

In September 2014, FPET went through a 1 for 2.5 reverse split which means that the people who bought the 25,200,000 shares for $37,800 were left with… that’s right, 10,080,000 shares. These shares are not affected by the share exchange agreement from last month.