Is Eventure Interactive Inc (OTCMKTS:EVTI) Reaching Unstable Prices?

So far this week the stock of Eventure Interactive Inc (OTCMKTS:EVTI) has been making a rather remarkable climb up the chart. On Tuesday and Wednesday it gained 21% and 41%, respectively, while yesterday it closed over 8% on the green at $0.0026. The traded volume of 64.6 million shares was almost three times higher than the monthly average for the stock.

Despite the increased interest shown by investors and the positive momentum from the first two sessions yesterday EVTI‘s performance was far from smooth. In fact, during the first half of the trading day the ticker was sliding downwards sinking to a low of $0.0017 before finally reversing its direction. Sitting deep into the double-zero price ranges and rather close to its 52-week low of $0.0011 EVTI is definitely a dangerous choice.

Last month the company did announce some encouraging news. First, at the start of August thanks to two new financing deals EVTI were able to retire over $550 thousand of debt before it could be converted into common shares. More recently, on August 27, the company decided to withdraw its PRER14C information statement for the potential increase of its authorized stock from 1 billion to 2 billion. Keep in mind, however, that in June EVTI already had to increase its authorized shares from 300 million to the current amount of 1 billion. The same PR also announced that an Equity Purchase Agreement with an entity called Aladdin Trading has been terminated. The terms of this agreement allowed Aladdin to purchase shares at a 50% discount.

It is clear that Eventure are trying to improve their debt structure and to limit the potential dilution but unfortunately the situation is still extremely grim. As of June 30 their financial state was simply atrocious:

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

At the end of the quarter EVTI had more than $1.1 million in convertible notes. In July another $365 thousand worth of notes were sold and they can be converted into common shares, after a period of 180 days from the date they were issued, at discounts ranging from 38% to 50%. Even with the retired amount the remaining convertible debt is substantial. And the effect on the outstanding shares has been devastating – in less than two months, in July and August, EVTI issued 237 million shares as a conversion of $523,451 in debt. This means that the average price of each share stood at $0.0022.

EVTI need to find fresh sources of capital but this time the terms of the financing deals must be far more favorable. If they fail to do so the rampant dilution might continue to prevent the stock from making a more prolonged recovery.