{"id":6454,"date":"2015-08-04T14:12:42","date_gmt":"2015-08-04T14:12:42","guid":{"rendered":"\/?p=6454"},"modified":"2015-08-04T14:39:44","modified_gmt":"2015-08-04T14:39:44","slug":"enerteck-corp-otcmktsetck-gets-a-surprise-crash","status":"publish","type":"post","link":"\/articles\/enerteck-corp-otcmktsetck-gets-a-surprise-crash\/","title":{"rendered":"EnerTeck Corp (OTCMKTS:ETCK) Gets a Surprise Crash"},"content":{"rendered":"\n

Following a couple of sessions without a single share traded last week, on Friday EnerTeck Corp (OTCMKTS:ETCK<\/a>) got nearly a third of its market cap sliced off in one fell swoop. Volume ballooned massively to 502 thousand shares – a record for the ticker – and ETCK<\/a> crashed 32% down to stop at $0.37 per share.<\/p>\n

ETCK<\/a> has been traded thinly in 2015 so far and zero volume days are not uncommon. Considering there have been no new filings or press releases coming from ETCK<\/a> last week, the sudden dump that pushed the price to its deep red close may be a bit of a shocker for traders.<\/p>\n

However, the company’s most recent filing – an 8-K dated July 2 – makes for interesting reading. The filing details an agreement between ETCK<\/a> and Mr. Thomas Donino – company director, his wife and a “family limited partnership” entity with members who are relatives of the Donino family. Between early 2012 and late 2014 Mr. Donino and the family limited partnership made a number of cash advances to the public company and now it seems they decided to have those repaid with stock.<\/p>\n

The catch is, they calculations to turn those advances into shares were made using the same terms offered to investors at the time the advances were made – that is to say, at significantly lower share prices. The sums advanced to the public entity were converted into units consisting of common ETCK<\/a> stock and warrants to purchase more shares, as well as converted directly into common stock.<\/p>\n

While the warrant exercise prices are significantly higher, the units were priced at $0.60 and consisted of two shares of common stock in addition to the warrant, setting the per-share price at $0.30. The advanced converted directly into shares had a conversion price of $0.35 and $0.20 per share.<\/p>\n

In light of the fact that ETCK<\/a> was trading for $0.50 on the open market on the day the agreement was signed, it’s actually a little surprising that the price did not slip much sooner. After Friday’s slump, ETCK<\/a> is a lot closer to the prices at which the Donino family received the shares and things may simmer down from this point on.<\/p>\n","protected":false},"excerpt":{"rendered":"

Following a couple of sessions without a single share traded last week, on Friday EnerTeck Corp (OTCMKTS:ETCK) got nearly a third of its market cap sliced off in one fell swoop. Volume ballooned massively...<\/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":[1776],"class_list":["post-6454","post","type-post","status-publish","format-standard","hentry","category-news","tag-etck"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/6454","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=6454"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/6454\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=6454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=6454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=6454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}