Amazonica Corp (OTCBB:AMZZ)’s Pump is Going Nowhere Fast
From hardwood flooring distribution to hydrogen fuel cell technology. It sounds like a strange change in the business but that’s exactly what Amazonica Corp (OTCBB:AMZZ) did and now, with their extremely clever patent-pending tech, they are going to lead the hydrogen revolution. At least that’s what some people are saying.
In reality, what they are trying to say is that the car makers spending billions of dollars on research and development have failed to commercialize the hydrogen fuel cell as a means of propelling your car and that a small cap publicly traded penny stock with next to no assets is going to save the day. We’ll leave it up to you to weigh the odds of this happening, but while you’re at it, you might want to think through some other facts.
AMZZ recently entered into a convertible promissory note with an entity called Anton Group Hill Ltd. The note is for the principal sum of $300 thousand and we mentioned in our previous article that it will probably cause some dilution. Even if you are prepared to swallow that, you should probably stop and ask yourself: “Is $300 thousand really enough to revolutionize the way we travel?” Things are not looking particularly good when you do a bit of research on the creditor either. The problem hides in the fact that you can’t really do any research on Anton Group Hill Ltd, because such an entity appears to be non-existent outside AMZZ‘s filings. As if that isn’t enough, the note is convertible into common shares with a 25% discount to the market price which gives the mysterious creditor an opportunity for some easy profits.
Still, if the technology really is that clever, the company will weather the difficulties and come out on top, right? Time will tell, but we checked the CV’s of the people running AMZZ at the moment and we can’t say that we’re too optimistic. Michael Soursos, AMZZ‘s CEO, for example, was until recently, serving as a Director and Secretary at Viosolar Inc (OTCMKTS:VIOSF). He was there for six years and yet, we read in the latest SEC filings that the company has failed to register any revenues since inception.
He was also a consultant at an enterprise called Bruca Trading Ltd where he worked alongside Mr. Rick Walchuk who is connected to American Graphite Technologies Inc (OTCBB:AGIN) and New America Energy Corp (OTCBB:NECA) – two companies that are famous for their long and disastrous promotional history.
And that brings us on to AMZZ‘s really big problem – the paid pump. Which, by the way, seems to be moving at a snail’s pace. Things are pretty quiet on the email front. So far, we have managed to intercept only one alert sent by Lions of Wall Street on November 25. The landing page is very much alive and kicking but the low trading volumes suggest that it’s not generating a whole lot of traffic. Things do indeed seem a bit slow at the moment, but let’s not forget that someone has set aside no less than $600 thousand for the awareness campaign. This means that more promotional activity is expected in the future but it also means that the third party paying for the whole show is going to want a return on their investments. That’s why, you should be extremely careful when considering the risks of a potential trade.
The pumpers’ inactivity around AMZZ seems particularly strange considering the fact that the promotional world seems to be buzzing at the moment. Two new pumps were born over the weekend – Guar Global Ltd (OTCMKTS:GGBL) and Makism 3D Corp (OTCBB:MDDD). Looking at early trading today, we can see that these two campaigns seem to be much more eventful than the one for AMZZ. This, of course, doesn’t mean that they are less dangerous.
