Some Quick Facts:
Increase in AS: 25,000,000,000 - 2,500,000,000 = 22,500,000,000
Par Value of New AS: .0000001
Net Proceeds if Full New AS sold at new Par Value:
22,500,000,000 * .0000001 = $2250.
If sold at Close on Aug 19:
22,500,000,000 * .0003 = $6,750,000.00
If sold at $.0001 per share:
22,500,000,000 * .0001 = $2,250,000.00
Block size to create $.0001: 1000 shares
Block size to create $.01: 100,000 shares
OS at July 31: 2,401,709,808
OS at August 19: 2,585,043,141
change in OS from July 31 to August 19: 183,333,333
If sold by company at August 18 Close of $.0009
183,333,333 * $.0009 = $164,999.97
If sold by company at August 9 Close of $.0015
183,333,333 * $.0015 = $274,999.96
Most likely, since the company has a tendency to work
with block amounts of $250,000, the change in the OS
was sold at about an average of $.001363636.
However, 183,333,333 being dumped on the market in one
day would have caused a major drop, so the most likely
scenario is that this amount was sold between the 9th of
August (day after Wyoming filing) and the 18th, day before
the supplemental filing of the financial.
Couple of other key facts:
Loan Receivable (Related Party): $1,599,748
Collectibility: Uncertain, worst case zero.
Stock Holders Deficit as of April 30: $1,299,422
Revised Deficit if Loan is uncollectible:
$1,599,748 + $1,299,422 = $2,899,170
Assuming an after Tax Return of 10% with a corporate
tax rate of 35%, the Net Revenues required to cover the
deficit before shareholders would ever see anything
$2,899,170/(1-.35)*.1=$44,602,615. Gross Revenues would
be even greater.
Assuming a $1,000,000 Revenue generation based upon
a $1,000,000 capital improvement of facilities, stockholders
are looking at more than 22 years to see a return on their
investment. Please note that the 1 to 1 ratio of Revenue
increase to Capital invested is merely an assumption. this
also does not take into consideration the reinvestment of
revenues to increase capital improvements.
The bottom line of this is that Stock Holders (those like you
and me) are not going to make a return on this security based
upon any EPS. Our hope is going to be relying on the speculation
around this stock that may cause upswings in price as ECPL
progresses. Wish us all luck.