Penny Traders Club

[Sobek]

Updated DD on ECOS pertaining to share structure:

Verified Authorized Shares: 10 Billion

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

Again, 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.

Due diligence explained below with links:

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

Why this form was filed on May 9th being the disclosed 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 shares. Plus it covers the company's butt in the event accusations say there was nowhere disclosing the outstanding share count.

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 very well be coming into the market.

Also because the company has not been able to bring filings current, it needs to be considered they don't have the money to do so AND it's very possible the O/S has increased even more since last May.

Now there's a press release floating around that shows the company that entered into the "Creation of ECOS BIO-ART LLC" with ECOS has a revenue base of $130 million a year but, that has not been verified or confirmed by the company nor is there any mention of a merger or r/m in the 8-K filed Friday.

That being said, I simply ask myself why would a company doing $130 million a year in revenues, want to merge into a company with tens of millions of dollars in debt?

The last ECOS financials reported for the period ending Sept 30, 2014, over two years ago, reflect $4.540 million in liabilities and a whopping $43.970 million dollar deficit. Numbers like that just don't disappear.

Also due to the time lapse, it's almost a given those numbers have increased and they're still running in the red simply because they obviously can't even afford to catch up their SEC filings.

For them to pay off the last reported debt, they would need to sell at least 3.5 billion shares at or over .01 pps.

That could mean the current o/s may very 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.

There's a couple rumors going around that need to be clarified.

The first is a rumor going around that a company with a YIELD sign or STOP sign can not issue shares (dilute) or convert shares. That is not correct. Note holders who own unrestricted shares for debt conversion can sell them whenever there is a market for it.

The second rumor is the O/S was at first 5 million and now they are saying it's 100 million. The posters spreading these numbers are pulling them out of thin air.

Use the links I provided above and with a basic calculator, anyone can figure the true outstanding share count.

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 it will crash from a brutal dump. All I know is that this is what I found in their filings.

GLTA and Happy Holidays!