GEQU

Global Equity International Inc (OTCMKTS:GEQU) Catches a Big Pop

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Global Equity International Inc (OTCMKTS:GEQU) just went bonkers on a major breakout out of deep sub-penny levels after a long and grueling decline. Interestingly, the move comes almost exactly at a test of the stock’s all-time lows, last printed back in June of 2015. We want to take a look at the company, generally, but also focus on the news that seems to have primarily offered the spark generating the big pop this week.

The move appears to have been catalyzed by the company’s announced that management just filed a Form 8-K with the SEC that formally disclosed the execution of a capital funding agreement with William Marshal Plc., an underlying asset of the AION Adventurous Fund and the AION Cautious Fund, which, in turn, are both compartments of a Luxembourg-based SICAV-SIF called AOIN SICAV-SIF Fund. According to the release, “the agreed capital funding will be initially for a minimum of Two Million Great Britain Pounds (approximately US$2.64 million) and will be received in one or more tranches commencing the first week of December 2017.”

Global Equity International Inc (OTCMKTS:GEQU) trumpets itself as a company involved in Corporate Consultancy and Recruitment.

GEQU provides corporate advisory services worldwide. The company offers its services to companies desiring to have their shares listed on stock exchanges or quoted on quotation bureaus. Its services include corporate restructuring, advice on management buyouts, management recruitment, development for corporate marketing, investor and public relations, regulatory compliance, introductions to financiers, and exchange listings.

Global Equity International, Inc. was founded in 2009 and is headquartered in Dubai, the United Arab Emirates.

According to company materials, “Global Equity International Inc., through its wholly-owned foreign subsidiaries, advises worldwide business leaders with their most critical decisions and opportunities pertaining to growth, capital needs, structure and the development of a global presence. With offices in Dubai and London, Global Equity has developed significant relationships in the US, UK, Central Europe, the Middle East and South East Asia to assist clients in realizing their full value and potential by bringing them to external capital and resources that place an emphasis on collaborative thinking. Furthermore, because Global Equity has offices in key financial centers of the world, they are able to introduce their clients to a unique opportunity of listing their shares on any one of the many stock exchanges worldwide.”

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As noted above, the company just announced a deal to raise funding, and shares of the stock took off. The related press release was actually quite revealing, however much of the story here seems a bit far-fetched to us until we see more details.

According to the release, the company plans to use the capital to create something like a ‘financial services solution’. “The capital funding received will mainly be deployed over four separate targeted acquisitions of financial advisory firms with multiple millions of dollars of funds under management. The first two companies to be acquired are United Kingdom based as announced in our June 2, 2017 press release; one of which is a financial advisory firm fully licensed by the UK Financial Conduct Authority with approximately $51,000,000 of funds under management, and the second of which is a “Discretionary Fund Management Group” based in The Isle of Man with approximately $39,000,000 of funds under management. The combination of these first two acquisitions will give the Company a $90,000,000 million book of business within the UK, several hundred retail clients, and relationships with a wide array of new supportive companies and a firm stronghold position within the financial services sector.”

Peter Smith, CEO of Global Equity International Inc., said: “We have waited a long time to be able to announce this closing. It is a monumental development in our Company not only allowing us to complete the circle from client to contract to funding to closing, it will also provide us with solid long term income, a distribution network, further development potential and a strong foothold in more than one highly regulated market. It may have been a long time coming, but this agreement moves the company into a different sphere. We will now become more attractive to potential clients for our capital markets division and allow us to be more selective with the clients we work with, while significantly shortening the time frame from contract to completion. In addition, we will have long term income from the books of business we will own and a distribution force not only for their traditional financial services opportunities that are profitable in their own right, but also for our capital markets division. We anticipate growing the advisory business very much in the way I did in my previous company whereby my prior company ended up with US$2.2 Billion of funds under management.”

Now commanding a market cap of $2.8M, GEQU has virtually no cash on the books, which must be weighed relative to about $725K in total current liabilities. GEQU is pulling in trailing 12-month revenues of $623K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -58%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $GEQU stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $GEQU, either long or short, and we have not been compensated for this article.