Shareholders Take It On the Chin as OriginClear, Inc. Pumps Its Shares Into Oblivion
June 17, 2015: Yet another Pump & Dump campaign has launched on shares of OriginClear, Inc. (OOIL), the 18th such promotion in just under 4 years. While brief respites from hawking the intrinsically worthless shares of this company make each pump effort distinct, in reality shares have been continuously pushed by the company onto anybody who would listen during that entire 4 year stretch. One only need to check out the ticker on our Hall of Fame to see that fact.
To its credit, OOIL makes no bones about the fact that it is responsible for the pumping of its own stock. This is in contrast to the usually fraudulent schemes hiding behind some non-existent third party that claims to be funding the promotion. OOIL's responsibility is made quite clear within the disclaimers provided at the end of the promotional newsletters that have landed in the Inboxes of interested parties with alarming regularity. The latest newsletter spells out that Jeff Bishop's Action Media Holdings, the publisher of duplicative newsletters Stock Preacher, Beacon Equity, Investor Soup and others, has been previously paid $190,000 for "advertising and promotional services" and $20,000 for the current effort.
Many cheerleaders would refer to such an aboveboard disclaimer as "transparency", however, we find it indicative of management's negligence that after four years of pumping, it hasn't yet realized that the shareholders' well being is compromised--share prices built on hype never maintain their artificial level; or, at a minimum, it doesn't care. A look at OOIL's chart since September 2011, when we first began tracking the promotions on this company, says it all.
|OOIL Chart Since September 2011|
|T. Riggs Eckleberry|
Much of the soon-to-be-created new stock will service OOIL's large convertible debt. Evidence of that eventuality is found under the "Subsequent Events" section of the most recent 10-Q.
Between April 2, 2015 and April 21, 2015, holders of convertible notes, known in our filings as “Convertible Promissory Notes” converted an aggregate outstanding principal amount of $180,000, plus unpaid interest of $18,489 into an aggregate of 6,687,866 shares of the Company’s common stock.According to the Form 10-Q filed by the company for the period ending March 31, 2014, unidentified creditors held $3,704,158 in convertible notes, leaving at least another $3,254,769 worth of debt to be satisfied and presumably soon to be converted to stock. It seems likely that additional notes have since been issued, thus increasing the outstanding convertible debt. It is also probable that OOIL has funded the Pump & Dump campaigns in order to enable debt holders to divest themselves of shares obtained by the conversion of debt and perhaps take on new notes. How likely is it that Eckleberry spent hundreds of thousands of dollars in promotions just to sell his own stock?
Between April 9, 2015 and May 12, 2015, the Company issued 3,500,000 shares of common stock for services at a fair value of $200,900.
On May 12, 2015, a holder of a convertible note issued in exchange for an accounts payable, known in our filings as “Convertible Promissory Notes” converted an aggregate outstanding principal amount of $230,000 into an aggregate of 4,455,422 shares of the Company’s common stock.
Can a reverse split be far off?
The cash generated by the notes is presumably required in order to support Riggs' generous compensation, which included a 2014 salary of $260,000 and a bonus of $160,000. In 2013, those numbers were $260,000 and $120,000. Considering OOIL reports earnings which can be classified as anemic at best; the company's liabilities are ever increasing; and, shareholders have been sodomized, we can't imagine how Riggs is deserving of these bonuses.
Perhaps the fleecing of investors is an act that is worthy of recognition and commendation.