EP Global Communications, Inc. (OTCMKTS:EPGL) Accelerates Its Fall
On Monday the stock of EP Global Communications, Inc. (OTCMTKS:EPGL) registered a loss of close to 6% and dropped down to 8 cents on a volume of 1.3 million traded shares. Yesterday the negative momentum got even stronger and this time the company slashed over 12% of its value closing the day at $0.069. The number of shares sold on the market also increased dramatically and reached 4.7 million, nearly 5 times higher than the average for EPGL.
There is nothing unusual in a pennystock suffering from a series of corrections but the fact is that EP Global is far from your typical pennystock company. Their latest financial report revealed that at the end of June they could rely on the following financials:
• $14.6 million cash
• $28.5 million total current assets
• $1.8 million total liabilities
• $6.1 million annual revenues
• $847 thousand annual net loss
Although the company is still not a profitable entity the rest of their results are extremely impressive and the fact that they are not involved with any toxic funders is another huge plus. There are a couple of pennystock that have an equally promising balance sheets but EPGL differs even from them.
On August 29 they announced the signing of a Development Agreement with a division of The Cooper Companies, Inc. (NYSE:COO). Many over-the-counter companies can only dream of entering into a deal of such magnitude but EPGL didn’t stop there. Yesterday they announced the execution of an Initial Agreement with none other than Intel Corporation (NASDAQ:INTC). The filing said that additional agreements are pending.
So not just one deal with a major corporation but two and what did EPGL’s stock do – as we said it crashed even harder. By now you might be wondering how is that even possible. Well, there are a couple of possible explanations. Despite its respectable assets and millions in revenues EPGL is still a pinksheet. They were supposed to file a Form 10 and become a SEC filer today but apparently they decided not to do it because the management team needed “a more clear understanding of any future Agreements or the future relationship with Intel Corporation”. This is a rather strange reason for remaining a pinksheet indeed.
EPGL also had 4.6 billion outstanding shares out of the 5 billion authorized as of June 30. The CEO of the company tried to reduce this number and was willing to retire part of its own holdings if the other major shareholders did the same. Unfortunately this led to nowhere and the reduction of shares never materialized. It should be noted though that 4.1 billion of the outstanding shares are restricted.
Some investors are also having issues with the messages published on the official twitter account of the company, which at one point even got deactivated only to be launched once more.
The deals made by EPGL are a rare sight in the world of pennystocks but so far very little concrete details have been revealed about them. The lack of information could be another significant reason why investors are still reluctant to put their trust in the company.
In early trading today the stock is still losing positions currently sitting 9% in the red at $0.063.
