Eventure Interactive Inc (OTCBB:EVTI) is Ready to Party Again
Eventure Interactive Inc (OTCBB:EVTI) dropped from a 52-week high of $1.68 per share on October 24, 2014 all the way to an all-time low of $0.0011 on August 25, 2015. In other words, in a matter of just over ten months, EVTI turned $10 into $0.0065. Why would anyone be interested in investing in such an appallingly performing stock?
Apparently, some people are finding something positive about EVTI. In fact, the volumes are significant and they seem to be remarkably stable, especially for a sub-penny ticker. The same can be said about the performance. There are corrections of course, but on the whole, EVTI seems to be determined to move in the right direction. Yesterday, for example, it gained a pretty respectable 25% and it reached a close of $0.004 per share for the first time in just under two months. But why are people so excited about the stock?
It’s certainly not because of the press releases. For one, the latest announcement is almost a month old which is a terribly long time in Pennyland. It says that the A/S count won’t be raised for the time being and that a potentially dilutive stock purchase agreement has been called off. What it doesn’t say is whether the company has managed to find another way of financing its operations.
Speaking of which, the latest 10-Q also isn’t among the things that is getting investors all fired up. It covers the second quarter of the year and it looks like this:
- cash: $13,663
- current assets: $28,859
- current liabilities: $3,089,622
- quarterly revenues: $348
- quarterly net loss: $2,653,711
Taking too much time to talk about the horrific financial statement isn’t really necessary. Just a few punches of the calculator, however, put things into a pretty grim perspective. During Q2, EVTI logged an average of $3.84 in revenues per day. The average daily losses during the same period, on the other hand, sit at a staggering $29 thousand.
That, believe it or not, is not the only problem. Because of the pitiful results, the company has been forced to issue a lot of convertible notes over the years in order to keep the operations going. As a result, at the end of June, there was toxic debt with a principal amount of exactly $1,164,384 and all of it was convertible into stock at a discount to the market price which, in some cases, reached 70%. The copious amount of red paint on the chart at the beginning of the article suggest that a large portion of the notes have already been converted and curiously enough, this is what seems to be getting investors so excited at the moment.
Apparently, many people reckon that the note holders have now taken advantage of the ridiculous discounts and that they have already done enough damage to the price. Those people now say that there will be no more conversions for the time being and they are convinced that EVTI should have plenty of room to breathe. But is this really the case?
Even if it is, the lemonade stand-grade revenues, the humongous losses, and the nightmare of a balance sheet don’t really suggest that EVTI has a lot of things going for it. That’s why proceeding with caution probably isn’t such a bad call.
