Elite Data Services Inc (OTCBB:DEAC) Crashes Horribly
Unsurprisingly, Elite Data Services Inc (OTCBB:DEAC) had a horrible crash yesterday, as the knot of dubious moves and suspicious activities finally unraveled under its feet.
To understand why this particular ticker crashed as horribly as it did, one does not need to look past the fact that it has been targeted by more than 35 paid pumps in the last two days alone. True, the compensations the pumpers received was as meager as the results said promotions gave in return, but suffice it to say that this turn of events is a really good tip-off of DEAC‘s nature.
And if that wasn’t indicative enough, the company’s financials surely are:
- Cash – $449 NUMBER NOT IN THOUSANDS
- Total Assets – $705 thousand
- Total Current Liabilities – $1.2 million
- Quarterly Revenues – $1 thousand
- Quarterly Net Loss – $1.1 million
And that’s not all. The company’s share structure history looks terrible, to say the least:
As of May 15, 2014, the Company had 16,069,108 shares of common stock of the registrant outstanding.
As of May 15, 2015, the Company had 21,773,282 shares of common stock of the registrant outstanding.
These numbers represent the company’s state BEFORE any share conversions under the most recent conditions that DEAC agreed upon with Bay Partners LLC just two weeks ago – and those weren’t pretty either.
According to this 8-K, DEAC agreed to sell up to $5,000,000 at a “purchase price for the Shares is equal to ninety percent of the lowest closing bid price, quoted by the exchange or principal market Company’s Common Stock is traded on, on any trading day during the ten trading days immediately after the date the Company delivers to Tarpon a Put Notice in writing requiring Tarpon”.
This means that yesterday, Bay Partners LLC could have converted a sizable chunk of their debt into stock at $0.108 per share and dumped it on the market, while the same stock was worth twice that amount for regular traders.
Of course, this is pure speculation – but it is a most plausible one, and it would explain DEAC‘s sudden dip on a drastically increased volume.
The fact that this is what could be happening right now, while the ticker is the target of heavy pumping activity, should definitely be taken into account by dedicated investors and opportunistic traders alike.
