MyEcheck Inc (OTCMKTS:MYEC) Climbs Up The Chart
Last week the stock of MyEcheck Inc (OTCMKTS:MYEC) registered four consecutive sessions ending in the green. On Friday the ticker closed with a gain of nearly 9% at $0.0194 on its biggest daily volume since the end of August. The last time MYEC traded at its current price was way back in May.
Investors certainly have reasons to be excited. On September 9 MYEC announced a processing service agreement with PacNet Services and 21 of PacNet’s 130 business customer have began processing with MYEC as of the date of the PR. More recently the company has also entered into electronic check agreements with Charleston Enterprise Group and TradeRocket.
Equally as important was the fact that last Thursday MYEC‘s Form 10 was finally approved by the SEC. The company first filed a Form 10 a year ago in October but had to withdraw it due to the lack of audited financials for the entire 2014. Well, now everything has been finally completed and as stated in the official PR as of tomorrow MYEC should become a fully reporting company. This will boost MYEC‘s credibility substantially but is it enough to justify the company’s current market cap of over $75.3 million?
Especially when you take a look at the last financial report according to which as of June 30 MYEC had:
• $22,850 cash
• $154 thousand total current assets
• $2.1 million total current liabilities
• $181 thousand revenues
• $1.6 million income
The limited resources of the company have forced it to rely primarily on the issuance of convertible debt in order to fund its operations. As of June 30 there were 4.07 BILLION outstanding shares out of the 4.9 BILLION authorized while over $800 thousand of the reported liabilities consisted of convertible notes. Millions of shares have been issued at severely discounted prices – back in April 40 million shares saw the light of day at $0.001 each. In July MYEC restructured some of its outstanding debt but as part of the new agreement they had to make three $30,000 payments. The Form 10 states that currently MYEC is in default on these payments.
The identity of MYEC‘s African bank partner is still a mystery. An official PR was supposed to be published back in August but after several delays the PR is still missing. According to a post on MYEC‘s Facebook page they will receive “an update from Africa” today.
Although MyEcheck are moving forward with their plans the numerous delays, the depressing financials and the bloated O/S count must not be taken lightly. MYEC are attempting to recover 1.44 billion shares through a lawsuit but so far they have successfully received only 275 million. Even if you believe in the potential of the company you should still use caution when putting any money on the line.
