Penny Traders Club

[Sobek]

Further DD on ECOS pertaining to share structure:

Normally I wouldn't post something of this nature but due to the potential losses people could experience if this turns out to be a P & D, I find it necessary to at least post my findings and give everyone a heads up and chance to decide for themselves.

I'm not saying the stock will crash or rocket, all I'm saying is do your DD before listening to the rumors floating around.

Verified Authorized Shares: 10 Billion

Verified Outstanding Shares as of May 19, 2016: 3,502,415,000

On June 3, 2014, the company filed a DEF 14C announcing they will do a reverse split. The reverse split was delayed but eventually FINRA approved it. It took place on February 18, 2015.

The reverse split did not reduce the authorized shares of 10 Billion. This information is located on page 8 & 9 of the DEF 14C.

This quote from page 8 explains why the NVSOS was not updated:

In connection with the Reverse Stock Split, we will not file with the State of Nevada an amendment to our articles of incorporation to reflect the split.

 

This quote is from page 9 telling the market what their a/s will be after the r/s that took place in Feb of 2015:

Following the Reverse Stock Split, we will have the corporate authority to issue 9,996,274,219 shares of authorized but unissued common stock.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10031070

If you refer to the SC 13G filed on November 6, you'll see there were 408,366 shares issued which were equal to 10.38% of the then outstanding shares showing the o/s WAS 3,934,161 shares.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10994859

Now if you refer to the SC 13G/A filed on May 9th, you'll see an additional 700,483 shares were issued but, this time those shares are only equal to .02% of the then outstanding shares. This would make the outstanding share count as of May 19th 3,502,415,000 shares.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11370844

Now why this form was filed on May 9th being their ownership is nowhere near 5% beats me but, it was and it with no questions reflects the o/s as of that date being 3,502,415,000.

What needs to be taken into consideration is that the minimum six month restriction on any shares issued as of last May (if there was a restriction at all) has expired and these shares may well be coming into the market.

Now there's a press release floating around that shows the company merging into ECOS has a revenue base of $130 million a year but that has not been verified by the company. What you also need to ask yourself is why in the world would a company doing $130 million a year in revenues even consider being affiliated with a STOP sign pink sheet with tens of millions of dollars in debt.

But let's say the merger is indeed viable and the merging company does indeed have $130 million in annual revenues, that would give the company a book value of roughly .03 pps. But, the company has not verified that information directly in a filing nor in a press release.

For them to pay off the current liabilities and deficit, they would need to sell at least 3.5 billion shares at or over .01 pps. That could mean that the current o/s may well be way over the 3.5 billion according to the May 9th filing. So, can they do it or get their debt under control? Who knows.

That being said, the last financials reported for the period ending Sept 30, 2014 reflect $4.540 million in liabilities and a whopping $43.970 million dollar deficit.

I can't emphasize enough to proceed with this ticker with caution. They did a very good job not to disclose the o/s in the 8-K filed yesterday but if you dig deep enough into the filings, it's as clear as day there are literally billions of shares that are potentially ready to hit the market.

Like I said, I don't know how high it will go up or if will crash. All I know is that this is what I found in their filings.

GLTA and Happy Holidays!