Eco Science Solutions Inc (OTCMKTS:ESSI) Is Today's OTC Focus

Eco Science Solutions Inc (OTCMKTS:ESSI) has captured a lot of interest on the OTC Markets. Obviously a lot of this comes from the stock running from $.25 to $2 in a month. While this is good for those that got in, ESSI is now attracting plenty of scrutiny and skeptics. This scrutiny comes as a result of the latest 10-Q, which the company filed yesterday. However, even more scrutiny is coming from OTC Markets, which hit the company with the dreaded skull & crossbones. Could the game be almost over for ESSI?First up, a little background on the company. According to the last press release from ESSI back in March, Eco Science Solutions Inc describes itself as "a technology-focused Company targeting the multi-billion dollar health and wellness industry. From enterprise software solutions, to consumer apps for daily use, the Company develops technical solutions that empower enthusiasts in their pursuit and enjoyment of building eco-friendly businesses and living healthy lifestyles. Eco Science's core services span localized communications between consumers and business operators, social networking with like-minded enthusiasts, rich educational content, e-commerce, and rapid delivery of products, all catering to the health-and-wellness lifestyle."With no news for such a long time, it was hard to figure out how ESSI was able to trade $4.8m worth of shares in a single day. That was, until we saw the ads on iHub and elsewhere from The Money Street calling ESSI "The Next Big Stock For 2016." It turns out ESSI is a big league promo with The Money Street having a "weekly advertising budget ranging from approximately $25,000 to $150,000 to cover the costs associated with creating, publishing and distribution of advertisements." What did these promo dollars get ESSI? A comparison to tech giant Amazon.com Inc (NASDAQ:AMZN). The promo said:

The cannabis industry is estimated to produce revenues of $10 Billion, of which $3.1 Billion (31%) from cannabis sales and $6.9 Billion (69%) coming from ancillary products and services. That’s a big part of revenues coming from not selling cannabis. And it’s probably worth noting that selling paraphernalia and cannabis related products is less competitive as everyone seems to be focused on selling weed. It’s eerily similar to how Amazon started out. It initially launched focused on selling books. It wasn’t a sexy product line, and one that was probably not too competitive at the time. This allowed Amazon to perfect is e-commerce model while building direct relationships with consumers that eventually led to it owning the coveted “the last mile” because of its delivery of products to the doorsteps of consumers. As Amazon started out just selling books, owning the last mile has allowed them to continue to expand their product offerings, and to grow vertically to further allow them to capture more market share. If you take a look at Eco Science’s business model, one could see the similarities to Amazon’s strategy.

To see if there were any similarities, we checked the latest 10-Q. It showed $60 in cash, $2888 in total assets, $2,084,299 in total liabilities, ZERO revenues, and a net loss in the three months ending July 31 of $628,570. To fund operations, ESSI has been issuing convertible debt and common stock. According to the 10-Q:

During the six months ended July 31, 2016 the Company received invoices for advertising services from SDOI totaling $675,326 and further received invoices for monthly project and planned technical development/maintenance, production and staging server administration, ongoing marketing services and monthly advertising management services totaling a cumulative $210,000. The Company determined the value of the shares issuable to settle the total amounts invoiced ($885,326) at a 30% discount to fair market value on the settlement date and recorded a loss of $379,425 in relation to the shares issuable. During the six months ended July 31, 2016 a total of 2,575,000 shares of common stock valued at $0.01 per share in relation to the aforementioned agreements with SDOI were issued. A total of $1,347,511 was recorded on the Company’s balance sheets as liability for issuance of common shares (2016 - $108,510). The allocated shares had not yet been issued as at July 31, 2016.

Currently trading with a market cap of $61 million, ESSI is another big league promo on the OTC Markets. We've seen what happens to other promos like MJMI, PSNP, BRKO and many others. We urge caution in trading ESSI. Don't get left holding the bag. We will be updating our subscribers as soon as we know more. For the latest updates on ESSI, sign up below!Disclosure: We have no position in ESSI and have not been compensated for this article.