Eventure Interactive Inc (OTCBB:EVTI) Continues Its Recovery

For four sessions in a row the stock of Eventure Interactive Inc (OTCBB:EVTI) has been moving up the chart and the daily gains have been more than impressive. Last Friday the company added another 19.2% to its value and closed at $0.0031. Compared to its September 8 opening price of $0.0014 the stock is now sitting over 121% higher.

Despite the sizable gains EVTI need to do a lot better. Investors who bought some shares of the company back in May when the market price fluctuated between 11 cent and 12 cents per share could now be facing losses of 97%. And indeed, in less than four months EVTI managed to crash from 12 cents down to a low of $0.0011 posted on August 25. Is there a possibility that the ticker will be able to return to its higher price ranges?

Although in the OTC world nearly everything is possible EVTI‘s financial state doesn’t inspire much confidence. In fact the latest financial report revealed a rather grim picture – as of June 30 the company had:

• $13,663 cash
• $28,859 current assets
• $3,089,622 current liabilities
• $348 revenues!!!
• $2,653,711 net loss

In order to fund its operations EVTI have been forced to take on more and more convertible debt and the resulting dilution has been devastating. At the end of 2014 EVTI reported around 25.5 million outstanding shares. As of May 18 that amount had more than doubled and now 61 million shares were outstanding. In July and August, however, the conversion of shares reached monstrous levels – over 237 million shares were issued at an average price of $0.0022.

And the dilution might not be coming to end anytime soon despite the efforts of the company. At the start of August EVTI announced that over $550 thousand of convertible debt was going to be retired before it could be turned into shares. The problem is that as of June 30 there were more than $1.1 million in convertible notes with another $365 thousand issued in July. The newly sold notes can be converted into shares at discounts ranging from 38% to 50% but at least they are restricted for e period of six months from the issuance date.

A new PR issued by EVTI could keep the positive momentum behind the stock going but the risks surrounding the company should not be underestimated. If the common stock continues to be diluted at the same rate the recent gains could easily be wiped.