Eventure Interactive Inc (OTCBB:EVTI) Closes Flat
After surging upwards for four consecutive sessions yesterday the positive momentum behind Eventure Interactive Inc (OTCBB:EVTI) lost its strength. The stock experienced a rather turbulent session but still managed to close flat at $0.0031. Inspired by the recent recovery investors are still hoping that today the company will resume its course towards higher price ranged but will this indeed be the case?
Back in May EVTI‘s market price moved between 11 and 12 cents per share. As you might have probably realized already currently the company is sitting deep into the double-zero prices. This means that in just a couple of months Eventure wiped around 97% of their value. The primary cause for the drastic depreciation could be the crushing dilution of the common stock.
At the end of 2014 EVTI had 25 million outstanding shares. Less than 5 months later, as of May 18, that amount had more than doubled to 61 million outstanding shares. Although an increase of 144% is quite alarming even by itself it pales in comparison to what happened in July and August. In those two months through the conversions of debt EVTI issued 237 million shares at an average price of $0.0022. As of August 19 there were 304.7 million outstanding shares.
As of June 30 EVTI had over $1.1 million in convertible notes with another $365 thousand convertible notes being sold in July. It is true that some steps to put the debt structure under control have been taken with around $550 thousand in convertible debt being retired at the start of August. The company also decided not to increase its authorized shares to 2 billion and to terminate its equity purchase agreement with Aladdin Trading, LLC. under the terms of which Aladdin could buy shares at a 50% discount. The problem is that the amount of the remaining debt is still quite substantial and the dilution could continue. Especially if you take into consideration that after a restricted period of six months the newly issued notes can be converted at discounts ranging from 38% to 50%.
Now, add to the mix the fact that EVTI finished the second quarter of the year with $348 in revenues and a net loss of $2.6 million and things get even more discouraging. Despite the serious red flags the current hype could be able to push the stock even higher.
In early trading today the stock is surging upwards currently sitting over 12% in the green at $0.0035.