New Hope For MEC Inc (OTCMKTS:MYEC)

MEC Inc (OTCMKTS:MYEC) is hoping that its name change from MyECheck Inc will turn things around for the struggling company. The company has remained quiet for much of 2016. Lately, the only way to get info out of the company has been to follow its Facebook page where CEO Ed Starrs has been posting updates. The latest updates have been a mix of good and bad for shareholders. However, the good news is that we think there's new hope for shareholders.First up is the good news. The name change to MEC Inc is certainly a step in the right direction. The company said the purpose of the change was " to better reflect the expanded focus of the company's offering to the international market." The company's services now include "the MyECheck patented electronic check service, the fastest, safest, broadest reaching and lowest cost U.S. payment method; the developing eMobile card free wallet enabling real-time, guaranteed mobile, web, POS or recurring payments in the U.S. for pennies per transaction; and next generation global digital banking and payment systems for international financial institutions, the e platform."MEC said in the press release that it is "pursuing software licensing opportunities with banks in Africa, and has licensed the e platform to an African Fin-Tech services provider for the purpose of sub-licensing MEC software to banks based in Africa." The real update came on the company's Facebook page. On May 27, Ed Starrs posted:

We are officially changing the name of the company to MEC Incorporated. We will be retaining all of our brand names. Our primary focus is on licensing core payment and banking solutions to banks. We have licensed our EmailMoni brand to an international bank based in Africa, that announcement is pending any day. We also have another bank in Africa sub-licensing and a growing pipeline of very interested banks. We believe the new company name is a better fit for our business, MyECheck will remain the name of our electronic check service in the US. We are interested in licensing eMobile to a major US bank, we are in discussions, Africa will bring good exposure of our capabilities. There are also opportunities presenting themselves for US companies that want to engage in the African market through our bank partners. We have completed all development and testing of the production EmailMoni system for our licensee, the last pieces we completed were bug fixes for the help desk, the bank has hired and trained about 40 customer service reps on the system. I think the final delay related to the marketing side not being ready. There has been a huge commitment, the bank has invested a year and half and millions of dollars internally on this, it is a big part of their future plans, and it is already operating, it will be announced!

Then on May 29, Ed added the link to the 8-K that was released on March 11. He added:This 8-K filed March 11, 2016 discloses a software license and agency agreement in Africa. The bank in Africa is a sub-licensee of MyECheck, under this software license issued to our Agent. The bank is contracted with the Agent, the Agent is contracted with us, with a pass through sub-license for whomever they sell our system. Our revenue is split automatically at the time of the transaction, our percentage share of transaction fees go into a joint MyECheck/Agent account at the bank in real time. The bank has contracted with a domestic company for the system (our Agent) and the software they have contracted for is ours.Now for the bad news. It's never a good sign when the CEO has to post this on Facebook:

I've been getting a lot of email from concerned shareholders. We are not going to go out of business. Our auditors reviewed the accusations and are satisfied they are baseless otherwise they would not issue their audit report. We have a very large deal in Africa that is about to be announced.

It's also never a good sign that two days later the Auditors that just finished the 10-K are let go. Furthermore, there are issues regarding Rod Zalunardo's employment agreement. Fraud? 200 million shares? Lawsuit? We're not sure what to make of this. The Facebook post said:

The first image is the signature line of Rod Zalunardo's employment agreement, his employment agreement does not grant him any stock. This agreement was reviewed by the auditors for the 2014 audit. The second image is the fraudulent employment agreement purported to grant 200 million shares to Rod that appeared after the audit and Rod's termination.

The latest Facebook post says:

Mr. Maciora had no business relationship with us, I believe Bill thought he could raise money for GreenPay so he came in to learn about GreenPay, he signed a non disclosure agreement, thats all.

Currently trading with a market cap of $15 million, MYEC does have hope, but CEO Ed Starrs needs to deliver. Right now, the only info on the company seems to be the iHub message board and Facebook. This is not where public shareholders should be turning to for news. We are hoping that there is some solid news around the corner about Africa. If Ed delivers here, shares will be off to the races and all is forgiven. We will be updating Insider Financial as soon as we know more. For continuing coverage on MYEC, sign up for our free newsletter today and get a copy of The Insider Financial Guide To Penny Stocks as a bonus!Disclosure: We have no position in MYEC and have not been compensated for this article.