Two days ago, we talked about the unusual trading activity around HDS International Corp. (PINK:HDSI). It seemed unusual because there was no information about what was going on with the company. Now there is.
Apparently, on Aug. 15 HDSI entered into an asset acquisition agreement with Hillwinds Ocean Energy, LLC. As a result of the agreement, there was a change in control and the previous Director Mark Simon has resigned from that position and all executive officer positions he held. The new President, CEO, CFO, Secretary, Treasurer and Director of HDSI is Tassos D. Recachinas.[BANNER]
In addition to that, and probably more importantly, the company now has some purpose. HDSI is now a green technology company providing carbon capture and sequestration solutions, as well as industrial, all natural ocean-based algae.
Not only does it have a goal, but HDSI seems to be going after it. One day after the announcement of the acquisition, HDSI announced it had secured a $500 thousand financing under a convertible promissory note. The note bears simple interest of 3% and is due and payable in February 2013. The company has the option to prepay or convert the note or any part thereof at $0.25 per share at its own discretion.
Traders seemed to like the news and yesterday more than 56 million HDSI shares changed hands for a staggering 60.71% gain and a close at $0.27. At this price, the market cap of the company would be around $91 million. Even with the fast-paced events of the past several days, this may be a little overzealous. There is not enough information to draw a complete picture of the financial situation at HDSI.
Nevertheless, it is obvious traders have taken interest in the company. It may be worth keeping an eye on in the coming weeks and months.
