2 major OTC stock market “losers” for July 14th, 2011: JBI, Inc. (JBII) & Double Eagle Holdings, Ltd. (DEGH).
JBI, Inc. (JBII)
On April 10th we profiled JBI, Inc. at $1.10 placing a speculative price target of $4/share on the stock. On June 15th JBII overperformed our target topping out at $4.20, a new 52W High.
In the last 3 weeks JBI has lost around 45% of its market value (counting today’s close). Are you thinking what we’re thinking? Yes, it’s time to look at JBI once again – this time for a potential bounce play that we think could make you 50% or more.
JBI Inc. (JBII)
Niagara Falls, Ontario Office
1783 Allanport Road
Canada L0S 1K0
JBI, Inc.’s cutting-edge Plastic2Oil™ process converts mixed waste plastic into separated diesel, heating oil, and light naphtha fuels. Low sulphur heating oil is diesel fuel without transport additives. Unlike existing plastic-to-oil operations, the Company’s process accepts raw, unwashed, mixed plastics. JBI achieves nearly 90 percent conversion of waste plastic into clean fuel, with approximately 8 percent off-gas captured and compressed. Approximately one liter of oil undergoes extraction from every kilogram of plastic, and continuous feeding of plastic optimizes the production output.
Double Eagle Holdings, Ltd. (DEGH)
A quick look at the chart tells all – you don’t need to be a genius to see the pump & dump formation here. Our advice? Bet on the upside with the promotion in the early-going; swing-trade when this play fizzles out and dives downwards.
Fuse Science Inc. is a company made from leading scientific minds and consumer product industry experts with a common goal to raise the standard of product performance through science in key multi-billion dollar categories. We leverage our global leading science to completely change the rules of the game. We’ve discovered through a combination of pending patents and trade secrets that we can now encapsulate nutrients, actives and other molecules at a far greater concentration than any time in history…
Unregistered Sale of Equity Securities
Item 3.02. Unregistered Sales of Equity Securities.
On June 20, 2011, the Company completed an initial round of financing in a private offering (the “Offering”) made to a limited number of “accredited investors” pursuant to the exemptions from registration afforded by Rule 506 of Regulation D and under Section 4(2) of the Securities Act of 1933. The amount of the Offering was initially set at $400,000, increased to $500,000 to meet investor interest and ultimately closed at $525,000.
In the Offering, the Company sold 21 units (the “Units”), each Unit consisting of a $25,000 principal amount, 8% one-year senior secured convertible promissory note (the “Note”) and a warrant (the “Warrant”) to purchase 833,334 shares of our common stock (the “Shares”).
Interest on the Notes accrues and is payable together with the principal amount of the Notes at maturity, which is one year from the date of issuance (the “Maturity Date”). The Notes are convertible at the option of the holders at any time prior to the Maturity Date, into Shares at a conversion price of $ .03 per Share, subject to adjustment in the case of stock splits, stock dividends and similar recapitalization events. The Notes are secured by a first lien on the Company’s assets.
The Warrants are exercisable at an exercise price of $.12 per Share for a period of five (5) years from issuance. The exercise price is subject to adjustment in the case of stock splits, stock dividends and similar recapitalization events. The Warrants may also be exercised on a cashless basis.
|Symbol||Company Name||Last||Net Change||% Chg||$ Volume||Volume|
|DEGH||DOUBLE EAGLE HOLDINGS||0.28||-0.208||-42.62%||$2,118,385||7435380|
|TLAG||TOTAL APPAREL GROUP||0.0028||-0.0012||-30.00%||$128,174||31389081|
|DGIN||DIVERSITY GRO INTL||0.0027||-0.0018||-40.00%||$103,733||38869107|
|NHPR||NATIONAL HEALTH PARTNERS||0.007||-0.003||-30.00%||$102,031||12959889|
|CHJTF||CHINA PHARMACEUTICALS GROUP||0.4622||-0.1178||-20.31%||$50,527||109320|
|OPCDF||OPTI CDA INC||0.12||-0.056||-31.82%||$48,475||375200|
|YELGF||YELL GROUP PLC||0.145||-0.045||-23.68%||$43,212||297592|
|UNDT||UNIVERSAL DETECTION TECH||0.0004||-0.0001||-20.00%||$38,968||95378120|
|AEDOF||AED OIL LTD||0.087||-0.073||-45.62%||$30,705||350000|