PV Enterprises (OTCMKTS:PVEC) Rises From the Ashes
2013 was a tough year for PV Enterprises (OTCMKTS:PVEC). Numerous paid promotions, unkept promises and horrific dilution turned the ticker into a roller coaster ride. On December 2, PVEC (formerly known as VDSC) plummeted into the land of the triple zeros and it seemed that getting out of it will be nearly impossible.
Not least because the latest financial statement had come out just days earlier and it showed that on September 30, around 2.1 billion shares have been issued as a conversion of debt. Investors were fuming, but the management team thought that the company is salvageable.
In the interest of fairness, we should note that, despite the severe dilution, there might be a light at the end of the tunnel – the positive bottom line at the end of the third quarter of 2013. Here’s a summary of all the important figures as found in the report:
- cash: $1,383
- current assets: $1.7 million
- current liabilities: $7.4 million
- revenue: $809 thousand
- net income: $410 thousand
It’s clear that PVEC are strapped for cash and, on the whole, the balance sheet leaves a lot to be desired. Then again, if they manage to remain profitable in the long run, they might just be onto something. The management team also stated in a press release that they are determined to change quite a lot of things around the corporate structure.
On November 13, they announced that they are starting a share buyback campaign and informed us that they are going to take a number of steps to stop the dilution, completely overhaul the share structure, and, eventually, uplist PVEC to the NASDAQ stock exchange.
In December, the new ticker symbol was assigned. PVEC‘s CEO, Mr. Peter Villiotis, announced that this is a major step towards reviving the company and promised that from now on, the shareholders will own a stake in a much more transparent enterprise.
Yet another press release came out on Monday informing us that PVEC has completed the acquisition of a company called Go Charts Marine, LLC – a revenue generating entity offering guides that make boaters’ lives a whole lot easier. Mr. Villiotis talked at some considerable length about the benefits PVEC can yield from the merger but he somehow failed to give us any details on the deal. Even so, the $266 thousand in dollar volume registered during the first session of the week suggests that investors might be starting to pay attention once again.
A point proven yesterday, when more than 865 million shares changed hands while the ticker doubled its price to $0.0006. The excitement was aided by the announcement that PVEC have managed to return nearly half a billion shares to the treasury. Apparently, the stock has been wrongfully issued as a conversion of notes that have already been converted which is a rather big mistake on behalf of PVEC.
Still – you’re thinking – at least they’re honest enough to admit the flop which is in line with Mr. Villiotis’ promises of greater corporate transparency. That may be so, but then why didn’t he inform his shareholders that he has increased the number of authorized shares?
According to Nevada’s Secretary of State’s website, the amendment was done yesterday and now that the message boards are aware of it, we can see that many investors fear further dilution. Others claim that the increased capital will ensure that the acquisition of Go Charts Marine is successful, but, since we have no details on the deal, we can’t be sure if they’re right or not.
In any case, the fact that Mr. Villiotis failed to inform his shareholder of his actions doesn’t really correspond to his vision of a transparent company that is heading to the national stock exchanges. Doing a lot of research and due diligence before putting any money on the line is absolutely essential.
