Ambient Water Corp. (OTCMKTS:AWGI) Sinks Again

After a press release and a lonely pump email, Ambient Water Corp. (OTCMKTS:AWGI) jumped 80% on Thursday. This freak session was followed by an immediate drop that wiped half of the gains made over the previous day. AWGI ended up at $0.034 per share on Friday, after trading its largest daily volume ever, at 4.3 million shares changing hands.

In a June 4 PR the company announced a multi-million dollar agreement. According to the deal AWGI gave a certain Pacific AirWell, Inc. exclusive rights to market and sell AWGI‘s atmospheric water generation systems on the territory of the state of California. The deal includes Pacific AirWell purchasing $1 million worth of AWGI technology for resale in CA over the first year of the agreement’s term and AWGI will receive a further 20% royalty from each unit sold.

It’s worth mentioning that Pacific AirWell, Inc. is untraceable through a Google search and its name only shows up in the various places that covered the deal with AWGI. There actually is a website hosted at pacificairwell dot com, even if it’s just more of a placeholder with barely any information on the company, except a couple of paragraphs on atmospheric water extraction. The domain was registered just two and a half months ago, with Mr. Andrew Grundman of Grundman law dot com listed as the registrant.

Here is what AWGI had to show for itself as of its last quarterly report for the three months ended March 2015:

• $47 thousand in cash
• $2.6 million in current liabilities
• $30 thousand in quarterly sales
• $1 million in quarterly net loss

The ‘Stockholder’s equity’ section of the report ends with the issuing of 6.7 million common shares at $0.03 apiece on Jan 5 this year. However, the ‘Subsequent events’ chapter reveals that on April 9 AWGI issued 4.72 million shares at $0.00935, or just under one cent per share, upon clearing $40 thousand worth of convertible debt and accrued interest.

Considering the inconsistent daily volume AWGI shifts, with 1 (one) share in total daily volume just before the 4.1 million share session on Thursday, the shaky figures on the company’s balance sheet and the significant conversion discounts it provides to the parties lending it money, investors may want to spend a bit of extra time researching this one on their own.