Yesterday, EnSurge Inc (OTC:ESGI) lost 8% on a huge volume. Was it an expected move and will the company be able to close 2011 on a high note?
As it is, ESGI is by far not among the most prolific news providers on the OTCQB. Just the opposite. Official company press releases are nowhere to be found on the OTC Disclosure & News Service. Nevertheless, ESGI closed yesterday’s session at $1.30 per share shifting a 52-week high volume of 326 thousand.
Although PRs seem to be absent, investors who have a vested interest in ESGI stock can rely on the company’s SEC filings to retrieve the information they need. Since ESGI is a registered SEC filer occupying the premier OTC marketplace, this should not be a problem.
ESGI’s latest 10-Q report, in particular, was released last month. Covering the 12-week period ended Sept. 30, the report paints a rather bleak picture of the company’s financial state. As it seems, ESGI sold a total of 5.6 million warrants and 3.1 million shares of common stock. As a consequence thereof, it has now booked a current liability of $1.36 million and a warrant derivative liability of $39.9 million. Thus, ESGI’s working capital deficit has soared to a staggering $41 million.
How exactly the company’s managers intend to go in the black is at this stage not quite certain. ESGI is currently focused on its drilling programs in Brazil, as well as its operations in Guyana and New Mexico. However, when the company’s efforts will start bearing fruit is also anyone’s guess, at least for the time being.
