Endeavor IP Inc (OTCMKTS:ENIP) Stumbles

Things were almost looking up for Endeavor IP Inc (OTCMKTS:ENIP), as the ticker was pushing and shoving its way towards double zeroes, but Friday brought reversal. ENIP slipped 33% and dropped back to $0.0006 per share, with volume picking up speed once more, at over 376 million shares traded.

The reason ENIP is shifting heavy daily volumes once more is yet another PR from the company, going live on Nov 3. ENIP announced the Supreme Court of the state of NY ruled in favor of the company on a promissory note case. As a result of the ruling ENIP is no longer obligated under promissory notes made to Bay Capital and Knight Financial. This essentially allowed the company to reduce its liabilities with a good $1.9 million.

This debt reduction was sufficient incentive for excitable traders to buy ENIP stock all the way up to $0.0009 per share on Thursday. The same sort of excitement sent ENIP into double zeroes in early September. Back then the company announced a patent license and a settlement signed with Schneider Electric USA, without any more specifics about the nature of the agreements. The September price hike lasted a single day, then got wiped out in a red streak. This new debt reduction surge extended over three sessions but looks just about as prone to crashing hard and fast, judging by Friday’s session.

With its current share structure, it’s somewhat difficult to imagine ENIP soaring. The thing is, the company diluted its shareholders over 250% within the space of just six months in 2015. Back in March there were 190 million outstanding ENIP common shares. By September this number was up to 695 million.

A shocking 99 million of the new shares were issued at just $0.00006 per share. This is not a typographical error, those are four zeroes after the decimal. An entity that lent money to the company converted $5,960 worth of debt into 99.3 million common shares at a stupendous discount.