Ecosciences, Inc. (OTCMKTS:ECEZ) Gets a Significant Boost

After months of trading in far lower volume and enjoying far lesser liquidity, yesterday Ecosciences, Inc. (OTCMKTS:ECEZ) jumped in both price and volume. The stock’s daily volume shot to 808 thousand shares – more than ECEZ traded over the full past month and an all-time record for the company. After a volatile session, opening with a huge gap up and spiking much further before finally settling, ECEZ stopped at $0.609 per share.

The company operated as On-Air Impact, Inc. under the OAIR ticker until mid-2014. The business plan was for OAIR to be a consulting company for the sports and entertainment industries, whatever that might mean. When that did not click, the business changed name and ticker symbol and became ECEZ.

The reason ECEZ popped yesterday should be the press release the company dropped after the closing bell on Friday. The company announced reducing its outstanding shares “significantly”. The one-man band running ECEZ – president, CEO, secretary and chairman Mr. Joel Falitz, exchanged 235 million common shares he held for a total of 4.7 million Series C convertible preferred shares.

This move lowered ECEZ‘s outstanding share number from 336 to just 101 million. What is curious in this situation is that this exchange was disclosed in the 10-Q filed two days before the PR, on April 29. However, this obviously escaped investors’ attention and the company decided to put the spotlight on the exchange.

Each of the Series C convertible preferred shares can be converted into 10 common shares. The holders of Series C shares can also choose to have them repurchased by the company at $0.10 per share.

Here is the brief summary of the balance sheet from ECEZ‘s last quarterly report:

  • $4 thousand in cash
  • $378 thousand in total liabilities
  • $13 thousand in revenues for Jun 2014 – Feb 2015
  • $147 thousand in net loss for Jun 2014 – Feb 2015

This sort of balance sheet can throw a wet blanket over the enthusiasm of those who got excited by the share exchange and the outstanding share reduction. Whether ECEZ has any additional fuel left to shift comparably large volumes and remain liquid remains to be seen.

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