{"id":6182,"date":"2015-07-08T13:13:41","date_gmt":"2015-07-08T13:13:41","guid":{"rendered":"\/?p=6182"},"modified":"2015-07-08T13:39:34","modified_gmt":"2015-07-08T13:39:34","slug":"investors-see-a-light-at-the-end-of-pervasip-corp-otcmktspvsps-tunnel","status":"publish","type":"post","link":"\/articles\/investors-see-a-light-at-the-end-of-pervasip-corp-otcmktspvsps-tunnel\/","title":{"rendered":"Investors See a Light at the End of Pervasip Corp (OTCMKTS:PVSP)&#8217;s Tunnel"},"content":{"rendered":"\n<p><img loading=\"lazy\" decoding=\"async\" style=\"float: right;\" src=\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/90\/90653\/pvsp.png\" border=\"0\" width=\"400\" height=\"179\" \/>On June 29, Pervasip Corp (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a>)&#8217;s CEO, Paul Riss, wrote a letter to the shareholders and said that his plans of improving the balance sheet, tidying up the share structure, and generally turning the company into a more appealing investment opportunity are coming along nicely. Considering the 10-Q for the three months ended February 28, this statement seems somewhat strange.<\/p>\n<p>The report shows, for example, that<strong> <a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong> &#8216;s financial shape wasn&#8217;t exactly healthy four months ago. In fact, the balance sheet is absolutely terrible:<\/p>\n<ul>\n<li>cash: $2,623<\/li>\n<li>current assets: $219,788<\/li>\n<li>current liabilities: $12,177,301<\/li>\n<li>quarterly revenues: $894<\/li>\n<li>quarterly net loss: $1,989,982 <\/li>\n<\/ul>\n<p>The pitiful cash reserves and the atrocious working capital deficit speak pretty well for themselves. And the 99.6% year-over-year revenue drop doesn&#8217;t suggest that things are getting better.<\/p>\n<p>Mr. Riss&#8217; claim that he has done something to improve the share structure also seems a bit odd. As we have discussed numerous times on these pages, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong> is riddled with convertible debt which is being turned into shares at a discount. Between November 13, 2014 and June 8, 2015, for example, the O\/S count grew <strong>from less than 1.2 billion all the way to more than 4.7 billion<\/strong>. <strong>1.1 billion<\/strong> of the newly printed shares saw the light of day at <strong>an average rate of less than $0.00009 per share<\/strong> (that&#8217;s right, <strong>four zeros<\/strong>) during the three months ended February 28 and between March 1 and June 8, <strong>a further 1.3 billion shares<\/strong> were issued as a conversion of debt at an undisclosed rate.<\/p>\n<p>Based on this, you&#8217;d be forgiven for thinking that Mr. Riss was a touch too optimistic when he said that his restructuring plans are coming together. That said, a few other things might suggest that some improvements are indeed being made. Last week, for example, Mr. Riss proudly announced that <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong> has completed the acquisition of Plaid Canary Corporation &ndash; an established holding company that is supposed to bring in quite a lot of revenues. As for the dilution, Mr. Riss said a few months ago that an entity called FLUX Carbon Corporation, the former owner of Plaid Canary and a controlling shareholder of <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong>, has agreed to absorb the dilutive impact of the remaining convertible notes.<\/p>\n<p>Investors apparently reckon that this is exactly what the company needs to get itself out of the mess and they are in a hurry to buy as much shares as possible. Only two red sessions were registered over the last two weeks and after smashing out of the triple-zero range, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong> quickly gained enough momentum to help it break above the $0.002 mark.<\/p>\n<p>Apparently many people reckon that with <strong>Plaid Canary<\/strong> on board and with <strong>FLUX Carbon<\/strong> taking one for the team, things will soon take a turn for the better. But how likely is this to happen?<\/p>\n<p>We&#8217;re about to find out. We must point out, however, that if you do a simple Google search, you&#8217;ll see that Plaid Canary Corporation, the company that is supposed to give <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong>&#8216;s revenues a massive boost, appears to have no internet presence whatsoever outside yesterday&#8217;s press release.<\/p>\n<p>We should also say that FLUX Carbon Corporation, the entity that is supposed to protect <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong>&#8216;s shareholders from the devastating dilution, is run by Kevin Kreisler. And he certainly knows a thing or two about dilution.<\/p>\n<p>In December 2014, Mr. Kreisler took the helm at a penny stock company called Greenshift Corp (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=GERSD\">GERSD<\/a>). When he was appointed as a CEO, <a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=GERSD\">GERSD<\/a>&#8216;s O\/S count was hovering <strong>just above the 100 million mark<\/strong>. Six months later, it exceeded <strong>1.6 billion<\/strong>. As you might have guessed by the fifth letter of the ticker, <a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=GERSD\">GERSD<\/a> is now going through a 1 for 100 reverse split which, by the way, is the sixth in the company&#8217;s history.<\/p>\n<p>Should this scare you away from <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=PVSP\">PVSP<\/a><\/strong>? Not necessarily. You should probably give it a thought, though.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On June 29, Pervasip Corp (OTCMKTS:PVSP)&#8217;s CEO, Paul Riss, wrote a letter to the shareholders and said that his plans of improving the balance sheet, tidying up the share structure, and generally turning the&#46;&#46;&#46;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1728,179],"class_list":["post-6182","post","type-post","status-publish","format-standard","hentry","category-news","tag-gersd","tag-pvsp"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/6182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=6182"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/6182\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=6182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=6182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=6182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}