EFIR gained 83.3% back and closed at $0.0022 on nearly 93 million share volume. Over 20% of that volume was made up of short sales, though considering the fact that the stock has not been promoted recently, the improvement should be pointed out. Founded in 1995 and previously engaged in the oil and gas business without any notable success, EGPI is currently running a new and still not clearly defined line of business, created trough a number of acquisition over the past years.
The reviving press release from yesterday concerned one of the newly acquired subsidiaries, M3 Lighting, Inc. The press release announced that the subsidiary has received a $10 million general purchase order, whereby the announcement sounded more like advertising the new partner of M3 Lighting.
EGPI acquired M3 Lightning in May last year in exchange for 14.3 million shares of common stock. At that time, M3 was a development stage company with no operations. According to EGPI’s latest 10-Q, “M3 specializes in the areas of lighting industry sales, design, product development, and sourcing, contracting and capital markets”, but as it seems no results from operation can be reported yet. For the first half of this year, the company had $916,298 in revenues, generated from undefined “sales activities”, as compared to no revenues in same period of 2009.
The promotions for EFIR this year have been, however, clearly defined. The stock was promoted three times, once per month since June. The latest promotion is from the beginning of this month and the $45,000 cash compensation has been paid by a third party. For one of the previous promotions the promoters disclosed to be holding 5 million shares of EFIR.
It seems that EGPI has always been heavily indebted and has paid out its debts through the issuance of common stock, which resulted in currently 246 million outstanding shares. At the end of June, the company had $3.9 million in assets and $7.4 million in liabilities, all of which due in short and $4 million of which in the form of notes payable and convertible notes. This year, all of the cash came also from borrowings and the working capital deficit is so far $6.8 million.
