Pre-Promotion traders will want to keep an eye on the penny stock of Sandalwood Ventures Ltd. (SWDZ) after the share price increase Friday. The Company recently acquired Eco-Tek Group (ETEK) in a SEA/SPA and likely increased the price of SWDZ stock to lockout any front loaders attempting to get in on the cheap. With a recent forward stock split and ties to the current penny stock awareness campaign of Chimera Energy (CHMR), something will happen, its just a question of when.
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ETEK Stock Strucure
- Last: 0.95, up 0.3399 (55.71%)
- Market Cap: 238.28M a/o Aug 24, 2012
- Forward Stock Split: 28-for-1 effective January 26, 2012
- Authorized: 7,000,000,000
- Issued and Outstanding: 250,819,800
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Sandlewood filed their S-1 on October 16, 2009 with the assistance of The Loev Law Firm, PC, the same law firm involved with setting up CHMR and the recent financing arrangements for JAMN. The attorney connection was enough to raise the curiosity meter, but when we checked the IR page of Eco-Tek and their use of a pirated ‘iStock’ photo, suspicions were confirmed and ETEK is on the pre-promo list.
On June 25, 2012, Sandlewood Ventures entered into a share exchange agreement with the shareholders of and corporate entity of Eco-Tek Group Inc. wherein it acquired the latter in exchange for 125,000,000 common shares in a transaction accounted for as a reverse merger. Eco-Tek blends and sells oil lubrication products and is the developer of Clik Tech Engine Treatment.
The acquisition shifts the focus of the Company to manufacturing and distribution of Clik’s products and ongoing research, development and commercialization of associated products. The Company will cease undertaking any mineral exploration activities and anticipates letting the rights to its Sandalwood 1 Lode Claim expire in September 2012.
Having a quick look at what Clik has to offer, you can expect to see a similar pitch as the GWBU promo. The distinct difference between the two is that Eco-Tek Group has top line numbers. For the three and six months ended June 30, 2012, the newly acquired Company booked sales of $61,621 and $150,141 respectively compared to $72,301 and $121,193 for the same periods in 2011 respectively. Gross profits on those top line numbers for the three and six months ended June 30, 2012 was $3,803 and $45,004 respectively versus $29,319 and $58,257 for the same periods in 2011 respectively.
About ETEK Stock
Sandalwood Ventures, Ltd., through their newly acquired wholly owned subsidiary, Eco-Tek Group Inc., is committed to the manufacturing and world-wide marketing of green lubricants and specialized systems with an emphasis on the automotive sector but also applicable to a variety of industrial, farm and virtually all mechanical equipment.
Click here to view the SEC filings for ETEK.
Bottom Line: The alarms are not gin off just yet, but ETEK is on the list of pre-promotion penny stocks. You just don’t do a 28-for-1 forward stock split because you’re bored and have nothing else better to do. With this green acquisition and the attorney ties to CHMR, ETEK is worth remembering for the time being.
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