EMS Find Inc (OTCMKTS:EMSF) Bounces on Acquisition News
The pump for EMS Find Inc (OTCMKTS:EMSF) started at the beginning of the month, with the landing page appearing first, and the hard mailer brochures from Charles Moskowitz coming later on. Initially, the promotion was fairly successful. The pumpers put in the effort to make their far-fetched promises sound as optimistic as possible and thanks to the hype, the ticker managed to go from less than $1.30 per share all the way to more than $2.30.
Then, in typical penny stock fashion, it all came crashing down rather quickly and after seven consecutive days of selling, EMSF found itself at $1.16 per share. On June 18, the management team tried to protect their dignity by denying any affiliation with the promotion or the people orchestrating it, but even that wasn’t enough to stop the ticker’s downfall. A press release, however, was.
Yesterday, EMSF announced that they have signed a letter of intent for the acquisition of an emergency response mobile application platform called Page Out. Like EMSF‘s own system, Page Out aims to cut down on the time emergency units take to arrive on the scene of an accident, but Steve Rubakh, the company CEO, says that the infrastructure built by the future subsidiary will provide many options that were previously unavailable.
Sadly, Mr. Rubakh couldn’t give us any details on the deal and he couldn’t say when it is expected to be closed, but despite this, the announcement changed the market’s sentiment towards the stock quite quickly. Yesterday, EMSF bounced back up and in a matter of six and a half hours, it managed to gain as much as 29%, finishing the day at $1.50 per share. Early trading today is not that bad, either. A few minutes after the opening bell, the ticker hit a high of more than $1.60 and although it has settled down since then, half an hour in, it’s still sitting in the green.
Clearly, many people reckon that Page Out’s acquisition is good news. And it might as well be. But does it mean that EMSF is now a safe place for your money?
Well, acquisition or no acquisition, EMSF is still being pumped. If the discussion boards and social networks are anything to go by, investors are still receiving Mr. Moskowitz’s brochures and that, as the people who got burnt on Virtus Oil and Gas Corp (OTCBB:VOIL) and Falconridge Oil Technologies (OTCMKTS:FROT) know, this is enough of a red flag. It’s not the only one, though.
As we mentioned in our previous articles, EMSF as we know it came to be after a reverse merger between a public shell called Lightcollar Inc and a private entity by the name of EMS Factory. EMS Factory became the company’s operating subsidiary and when the merger was closed, the newly appointed Mr. Rubakh said that its financials will be filed by mid-June. We’re now well into the second half of June, but there are still no signs of EMS Factory’s balance sheet.
In light of this, some people might be feeling a bit misled by Mr. Rubakh and they won’t be the only ones. As we also mentioned last week, some of his previous business endeavors didn’t turn out to be quite as successful as everyone had hoped.
Last but not least, even if you reckon that Page Out’s acquisition is really going to turn the tables around for EMSF, you mustn’t forget that while you’re keeping your fingers crossed in the hope of a better future, a select few might be releasing a huge amount of discounted stock on the open market. More specifically, those select few could be unleashing up to 18 million shares which were originally purchased for just over $36 thousand.
