Borislav Tonev

Envoy Group Corp (OTCMKTS:ENVV) Jumps to Life

by Borislav Tonev February 11, 2016

Envoy Group Corp (OTCMKTS:ENVV, ENVV message board) has just started experiencing its first active sessions on the OTC and it must be said that things are not looking bad. About a month ago, prior to the still somewhat shaky volume, the ticker was idling at $0.10 per share. By contrast, after a 33% jump yesterday, it stopped at $0.40.

The reason for this is a couple of distribution agreements that ENVV signed which will allow them to sell the Louis XIV energy drink in Canada and Taiwan. The Louis XIV brand isn't new. In fact, the energy drink has been on sale in various European countries for a while and judging by its Facebook page, plenty of people seem to like it.

The idea of ENVV, a small OTC company, introducing an established brand to new markets does sound quite tempting. So, where's the hitch?

It's in the latest 10-Q. Here's what it looks like:

  • total assets: $10 (that's ten US dollars)
  • current liabilities: $54,110
  • NO revenue since inception
  • quarterly net loss: $6,351

The distribution agreements that ENVV signed require advance payments for the acquisition of inventory which means that if the company is to start selling the novelty beverage, it will need to raise some money.

The person responsible for this task is called Harpeet Sangha who is ENVV's CEO and owner of 50 million common shares. It must be said that his penny stock career is not exactly success-studded.

He is the Chief Executive Officer of Verde Science Inc (OTCMKTS:VRCI) – an OTC-listed pot stock with a market cap of less than $48 thousand, very little cash, and no revenue. He was also once at the helm of Sharprock Resources which is now known as Evergreen-Agra Inc (OTCMKTS:EGRN) and is delinquent in its public reports.

Not exactly the spotless record you were probably hoping for, but it must be said that VRCI and EGRN's current situation isn't necessarily indicative of what's going to happen to ENVV. There is one more thing that could, however, squish the stock beyond recognition.

ENVV's O/S count sits at a nice, round 80 million and we were wondering who could be holding these shares. As we mentioned already, Mr. Sangha owns 50 million of them, and if he wants to get rid of them, he'll need to file some regulatory filings. The rest, however, are held by some unnamed investors and unlike Mr. Sangha, if they decide to liquidate their positions, they won't need to publish any reports at all.

The said investors bought 3 million shares when ENVV was going public for a grand total of $37,500. In 2014, the company effected a 10-for-1 forward split which means that immediately after it, they held exactly 30 million shares of ENVV common stock.

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