Oil $20 was a phrase that was mentioned multiple times during last week’s trading session and a large number of Company’s in the sector are expected to have no choice but to shut down operations and file for bankruptcy in the coming months. Energy Holdings International, Inc. (OTC PINK: EGYH), a company that has been trying to acquire two 225 MW combined-cycle power plants in Bangladesh, would seem to be insulated from the declines since, until now, has yet to establish themselves as a player in the energy industry. However, the bleeding has hit EGYH stock, despite its tiny share structure, to such an extent that a bounce back to copperland has this one atop the watchlist this month.
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Energy Holdings International was set up in 2007 to focus on acquiring, developing and managing energy assets across the Middle East, Asia and Americas. Led by John Adair, CEO, a long-time oil & gas executive, the group of executive officers and directors of which HRH Prince Abdullah Bin A. Al Saud, deputy minister of foreign affairs in Saudi Arabia and 3rd son to former King Abdullah Abdulaziz Bin Abdullah, have such extensive experience in sourcing, acquiring and managing assets across the globe, it’s a crying shame that EGYH isn’t as Royal as it could be.
EGYH hit our scanners on Thursday last week after 10.4 million shares traded, ($36,467) which was the highest volume trading session on the year for the ticker which has declined from 0.09 to a new all-time low of 0.0025, -97%. It’s uncommon for such a huge drop to occur when you consider there are only 100 million shares authorized, 45,364,087 issued and outstanding (as per the last Q filed) of which officers and directors owned 19,908,179.
Per the last Q filed, Energy Holdings Intl had $41,237 in current assets, of which $162 was cash, with $2,306,199 in total liabilities of which $100,000 was a defaulted note payable and $44,006, net of discounts, were convertible short-term notes. The defaulted note, scheduled to have been repaid by July 1, 2014, is less important than the short-term notes since it was issued under Sharia law meaning it bears no interest, however the three new convertible promissory notes of $84,000, $57,000 and $26,500 that were issued during the nine months ended March 31, 2015 are likely the cause of the recent decline in EGYH share price.
Two of the the three notes issued matured already, August 19 for the $84,000 one and June 17, 2015 for the $57,000 one. The third of the three, the $26,500 note, does not become due until February 20, 2016. The terms of the two matured notes are favorable to such an extent that each may be converted the greater of (a) 58% of the average of the lowest three trading prices during the ten trading days before the conversion or (b) $0.00009 per share for the $87,500 issue and at 50% of the lowest trading price during the twenty trading days before the conversion for the $57,000 issue.
Understanding the terms, 58% of the average of the lowest three trading prices during the 10 trading sessions before the conversion would equate to 58% of 0.0025 or 0.00145 – assuming the conversion was to take place at some point in the last few days. Prior to the start of September, EGYH had never traded below 0.0045, nor had it seen the kind of activity its recorded since December, 2014 when shares traded between 0.022 and 0.10.
Back when EGYH was trading well in December, 2014, it was shortly after the Company announced that they incorporated and established EnergyVest 1 for the benefit of the Joint Venture with Rasan Energy Holding Company. The deal, to be owned 50/50 between EGYH and Rasan Energy Holding called for Rasan to provide $60 million investment funds for the acquisition of proven oil and gas properties in the United States and Canada.
The 10K for EGYH is due to be filed by months end at which time a full and detailed analysis to what shares have been issued can be viewed. When you consider how other subpenny stocks with billions of shares in the market have risen, it’s hard to think that one with a share structure as small as EGYH can’t be a huge bounce runner in the coming weeks well into the silver range – especially if the bid whacks cease and BKRT moves off the ask.
One must remember – EGYH was a $1 stock not too long ago. Any updates from the Company could send this right back to that level.
Find out more about EGYH shares here: $EGYH
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EGYH Stock Detailed Quote – Past 5 Days