Endeavor IP Inc (OTCMKTS:ENIP) Pushes Away From Rock Bottom
In yesterday’s session the share price of Endeavor IP Inc (OTCMKTS:ENIP) put up 300%. This impressive sounding feat is made less exciting by the fact that ENIP had only one way to go and it was up, as the stock moved from $0.0001 to $0.0004 by the closing bell. The cause for the stir were a news release and an 8-K filing.
The reason for ENIP‘s green move is the announcement that the company received a “declaratory judgment” by the Supreme Court of New York, that proclaims ENIP is relieved from promissory notes issued to Bay Capital and Knight Financial in the total sum of $1.9 million, along with accrued interest.
Sizable debt reduction is always cause for celebration, or almost always. ENIP investors are probably a little bit too deep in the swamp of dilution that has already taken place to really cheer over the news. ENIP published its latest quarterly in mid-September and this is the brief version of its balance sheet:
- $141 thousand in cash
- $3.4 million in current liabilities
- $752 thousand in quarterly revenues
- $201 thousand in quarterly net loss
The liabilities figure has now obviously been adjusted, with the $1.9 million in convertible debt and attached interest gone. More importantly, the quarterly report provided an update on the company’s share structure. ENIP is officially terribly diluted, going from just 190 million shares in March 2015, to its last reported 695 million outstanding shares in September.
The previous excitement spike charted in early September was wiped almost in full within just four sessions. It remains to be seen whether the debt reduction announced yesterday will help the price remain above rock bottom for a longer stretch of time.
