Solar Energy Initiatives, Inc. (OTCMKTS:SNRY) Keeps Climbing
Small market cap businesses have always been particularly enticing to penny traders. It seems Solar Energy Initiatives, Inc. (OTCMKTS:SNRY) is one such example, coming with an added ‘bonus’ of a price per share that is just one tenth of a cent. What is the story about SNRY, though?
SNRY is a business that allegedly works in the solar energy sector, had insignificant assets as of April this year and did not generate any revenue over the last 18 months. The company closed down all of its ‘dormant’ subsidiaries in Q1 of this year and is now planning to expand its scope of operations by acquiring the assets of an entertainment consulting company, as well as a restaurant management company. This strange twist in interest may be the least of SNRY‘s problems.
The company is currently run by CEO Michael Gelmon. Mr. Gelmon’s less-than-perfect track record of OTC company involvement can be glimpsed through a simple web search, linking his name with penny dilution disasters such as Protocall Technologies, Inc. (OTCMKTS:PCLI), PaperFree Medical Solutions, Inc. (OTCMKTS:PFMS), Banyan Corp. (OTCMKTS:BNYN) where he served as CEO in the past. Two of those tickers are now virtually dead, sitting at the absolute low of $0.0001 per share, and PFMS is trading at $0.0003, and all three are in the Pink No Info tier on OTCMarkets.
The current situation of SNRY is hardly going to inspire a lot more confidence in investors. SNRY effectively transferred voting control to Novation Holdings, Inc. (OTCMKTS:NOHO) against shares of HB&G – a company operating the abovementioned entertainment and restaurant businesses. In this exchange SNRY issued a mix of common and preferred stock to NOHO and assumed $160 thousand worth of convertible debt from HB&G, then issued a further $70 thousand note for unpaid rent of the restaurant.
SNRY also happened to approve a twofold increase of its authorized shares number, from 750 million to 1.5 billion common shares. With SNRY‘s share price at $0.001 and hundreds of thousands of convertible debt, as well as a raising of the authorized share number, traders should be able to put two and two together on their own.