Many times within the penny stock arena it takes time for news to spread to all those who may be interested in a stock. This seems to be the case with a small company called Embarr Downs Inc (OTCMKTS:EMBR), who was recently involved in a reverse merger with Pest Pilot. While it was announced late last week that the merger had been finalized, the repercussions of this news seem to finally be setting in today.
Embarr Downs Inc (OTCMKTS:EMBR) shares had gapped up to $0.002 on Monday morning, only to close lower at $0.0015 by the end of the day. Then yesterday came around and the stock fell further to close the day at around $0.0013 per share. Today has been a different story however, as investors seem to be realizing with optimism what this merger may in fact mean in the long run. If the new company can figure out a way to utilize the upcoming technologies of aerial drones to create a competitive agricultural pest control system, this stock could attract both new investors as well as media attention. It will be interesting to watch to see how the stock reacts through the rest of the day and if signs of dilution may become a factor throughout the rest of this week. While filings show that there are only 53.7 million shares outstanding, it appears that this number may have to be updated, as volume indicates there are likely more shares on the open market than reported.
The stock is up 46.15% or $0.0006 following the news, hitting $0.0019 per share. About 29.82 million shares traded hands or up 50.23% from the average. EMBR has declined 51.85% since May 19, 2015 and is currently downtrending. It has underperformed the S&P500 by 48.18%.
Embarr Downs, Inc. is a development-stage company. The company has a market cap of $69,900. The Company’s business is the buying, selling and racing of thoroughbreds that can race in the allowance and stakes levels of thoroughbred racing. It currently has negative earnings. On August 29, 2014, the Company acquired W+B Partners.