eMONEco, Inc f/k/a Mascot Ventures Inc (OTCMKTS:EMON) Picks Up Some Volume
eMONEco, Inc f/k/a Mascot Ventures Inc (OTCMKTS:EMON) started off a while ago with the idea of exploring natural resource properties. Unfortunately, investors weren’t really interested and the plan was going nowhere. In 2013, some new people took the helm, the company abandoned the mineral exploration idea, and it entered the mobile banking industry.
Once again, investors failed to react, but the people heading EMON refused to give up. At the end of 2014, they retired quite a lot of stock and made the share structure much more attractive. Again, however, the market remained unmoved and the stock failed to generate any sort of significant volumes… until about two and a half weeks ago, that is.
On April 23, EMON published an 8-K and slowly but surely, it started attracting attention which culminated in Friday’s dollar volume of about $384 thousand. The price has gone up as well. At the end of last week, EMON jumped up by 9% and it closed the session at $1.95 per share – 97% above the value before the start of the run. Investors are finally paying attention and they seem quite excited about the company’s future, but let’s take a closer look and see what all the fuss is about.
The 8-K form in question informs us about a new agreement with an entity called Global Green International Holdings according to which Global Green will offer EMON‘s mobile banking platform in Africa. EMON will need to provide all the necessary marketing and technical support services, but in exchange, it is supposed to receive a total of $5 million, $1.5 million of which is due upon the execution of the agreement.
A quick look at the latest 10-Q reveals that EMON definitely needs the money. Here’s what the company recorded on January 31:
- cash: $2,285
- total assets: $17,285
- total liabilities: $913,679
- NO revenue since inception
- quarterly net loss: $117,256
Some of you will probably run for the hills after seeing these figures, but other might actually be quite encouraged. They probably hold the opinion that, while the company has taken its sweet time getting to where it is today, and while the balance sheet is indeed quite dreadful, once the agreements start yielding results, things could become interesting.
It’s up to you to decide which camp you want to join, but you mustn’t forget to check out the float carefully and see how it came to be. And once you take a look at the 10-K for the period ended October 31, 2013, you’ll see that in 2007 and 2008, EMON sold 24,180,000 shares (as adjusted for the 13 for 1 forward split from 2013) for a grand total of $40,500. This, according to the company profile at the OTC Markets, represents 100% of the float and although the shares were issued such a long time ago, the stock has been so illiquid, that some of the people who bought them might still be holding on to their holdings. Now, the increased volumes could give them the chance to start unloading.
And even if they decide not to do that, there are others who could potentially make money out of the current surge in the right direction. The latest 10-Q tells us that there’s no shortage of convertible debt which can be turned into stock at a fixed rate of $0.25 per share. So, the potential profits for some people could be quite huge. Unfortunately, retail investors might not be among them.
