EMS Find Inc (OTCMKTS:EMSF) Crashes Again, Distances Itself from the Pump
On May 27, a press release informed us that the merger between Lightcollar Inc. (now known as EMS Find Inc (OTCMKTS:EMSF)) and Ems Factory has been completed. The original idea of selling illuminated pet collar pendants was ditched and the public company assumed the operations of its new subsidiary. EMSF started working towards developing a special on-demand medical transportation platform for mobile devices and Mr. Steve Rubakh, the newly appointed CEO was pretty excited about the future. If only he knew what was coming next.
Shortly after the deal was closed, EMSF found itself in the pumpers’ sights. First, a landing page appeared and a few days later, some glossy brochures touting the ticker landed on people’s doorsteps. The budget amounted to at least $1.2 million and at first, it seemed like money well spent.
Last week, EMSF experienced some increased volumes and it ran from less than $1.30 per share all the way to $2.07. Then, however, some people started having their doubts. The financials of the newly acquired subsidiary were (and still are) nowhere to be found and the company website showed some information that wasn’t completely in line with the truth. As we mentioned in some of our previous articles, the web portal said that the beta testing of EMSF‘s mobile application was supposed to begin in “early 2015”. This obviously didn’t happen and Mr. Rubakh and his colleagues were forced to edit the page (screenshots: before and after).
There’s no way of saying for sure whether this or something else pushed investors away from the stock, but the chart at the beginning of the article clearly shows that they are not exactly in love with EMSF anymore. In a matter of just five sessions, the ticker lost 36% of its value and it’s now sitting at $1.32 per share.
All in all, Mr. Rubakh has had a rough few weeks. This isn’t his first unpleasant experience with penny stock companies, though. He was once a part of an OTC enterprise called Power Sports Factory (traded under the PSPF ticker symbol) and while he was there, he tried to give his company some credibility by signing endorsement agreements with former racing drivers Mario, John, and Jeff Andretti. Then, however, PSPF forgot to pay the Andrettis and as a result, the company got involved in a lawsuit. The operations were later closed “due to financial difficulties” and the stock was eventually revoked in 2013.
Despite the less than crystal clear track record, Mr. Rubakh and his colleagues want to keep their names clean. After yesterday’s closing bell, they issued a press release and said that they have absolutely nothing to do with the ongoing promotional campaign for EMSF. Apparently, they haven’t paid any money for it and they haven’t endorsed it. They also said that the current management team hasn’t sold any shares over the last thirty days. This is probably true, but if you rewind the tape a bit further back, you’ll see that the people who were previously at the helm did sell some shares.
In fact, a couple of years ago, they sold 3,650,000 shares which were transformed into 18,250,000 shares thanks to the 5 for 1 split from December 2014. These shares were sold for just $36,500. At least on paper, they are now worth more than $24 million and the investors who bought them might be eager to cash in on the absolutely colossal profits.
Make sure you keep this in mind while you’re waiting for the start of the Beta testing of EMSF‘s mobile app.
