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By Annette Thatcher
Nov 24, 2014

eCrypt Technologies, Inc. (ECRY) Gets Pumped For $5.1 Million

eCrypt Technologies, Inc. (ECRY) made a huge leap on Friday that happened after ECRY stock had been laying low for a prolonged period of time. There was no noteworthy update from the company to give the stock such a boost. For this reason, the sudden move up the charts can be attributed to a pump in the amount of $5.1 million which targeted eCrypt Technologies on Thursday. The promoter who churned out the promotion emails was Stock Tips, while the paying party was Laluna Services, both of which have taken part in many previous promotion campaigns.

ECRY stock gained 150.57% in price to close at $0.332 on a 29,357,236 share volume. The campaign continued going into this week and has been followed by other campaigns. Stock promoter QualityStocks engaged in a campaign for a compensation of $25 thousand, paid for by eCrypt Technologies itself. There were promotions for reportedly no compensation, carried out by OTC Tip Reporter, EquityTradingAlert.com, PennyStockScholar.com, and SmallCapInvestment1.eCrypt Technologies, Inc. stock chart

The promotions have started in the typical pattern for pump campaigns. ECRY stock soared up the charts at the end of last week. The hype is at its highest after the promotion emails have been spread throughout the weekend. Those of you familiar with the path of stocks under such campaigns would know that the end result is far from fortunate for the companies that have been their target. The aftermath is usually a sell of a high amount of shares on the open market, resulting in a crash for the stock.

How much shares of ECRY are there to dump and could the company sustain a crash at its current condition? While recovering from a crash is a daunting task for any public company, no matter how well established, the number of shares outstanding and the financial condition of the company is vital for its future. As of September 30, 2014, ECRY had the following financial results, as listed in its latest 10-Q:

  • Cash: $25.8 thousand
  • Total current assets: $25.8 thousand
  • Total current liabilities: $1.8 million
  • Revenues: $0
  • Net loss: $164.1 thousand

There has been virtually no shift in the venture's financials in the past quarter. That being said, eCrypt Technologies is very low on cash and assets to operate with and needs to cope with a high amount of accumulated liabilities. ECRY has made no revenues in the past quarter, which is not the first instance of such dismal results in the past few periods. Ultimately, the venture has ended at a loss from its operations.

As of November 13, 2014, there were 128,538,890 O/S of ECRY stock. Through five tranches of unit issuance between July 7-10, the company issued a total of 580 thousand units for total proceeds of $58 thousand. Each unit consist of 1 share of common stock and one half of a common stock purchase warrant. Each full warrants is exercisable at $0.15 per share.

On September 26, eCrypt Technologies issued 171,875 shares of common stock for compensation, valued at $20,109 with a per share price of $0.117. The agreement calls for a total of 2.75 million shares of common stock to be issued during a 21 month period. ECRY has reportedly decided to issue 171,875 shares every three months after the grant date.

ECRYAs of September 30, the company had $558.5 thousand in accumulated loans and $844,854 in notes payable. Over the past month, ECRY entered into a couple of subscription agreements for the issuance of a total of 300 thousand units for proceeds of $30 thousand. The company made extensions on six notes payable, totaling at $279,960.

With the increased risk of dilution of ECRY stock and the ongoing pump activity, investors are advised to do their own due diligence before buying shares on the market.

Average Reader Price Target For ECRY:

Going Down!
0.0431

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