ZVTK closed the last trading session with a 17.14% jump up. The closing price was $0.0041 and the total volume of 46.71 million shares led the stock as high as $0.06 during the day. It looks like traders’ interest got provoked by a new announcement from the company. Just like it was last month on the previous exciting news from the company, ZVTK shares look neither technically nor fundamentally likely to overcome the one cent level for long.
Zevotek presented on Friday a new product named Gung H2O. The company says it has a U.S. Patent and reduces water use by up to 70% in the average American household. Again, Zevotek intends to launch an aggressive sales strategy including heavy TV, Internet and print media advertising. That news might sound great as it promises more positive press releases to follow and maybe raise again the share price.
The problem is that Zevotek ran out of cash already in the third quarter of last year, facing current liabilities of almost $1.6 million. Disproportionally high selling and administrative costs produced only meager revenues and if no financing is urgently provided the company’s existence could be under question, not just its new sales campaign.
Dilution risks arise also from the company’s debts, some of which are in the form of convertible notes. Since the end of the period of the last financial report, Zevotek has issued 30 million new shares upon conversion of promissory notes. In addition, the company is still in a dispute concerning the holders of some of the convertible notes, who require ZVTK to deliver another 182 million common shares over time.
