Evcarco Inc. (PINK:EVCA) Sets All Hopes on the New CEO
10 Feb 2011

It is hard to explain what exactly made Evcarco Inc. (PINK:EVCA) stock again attractive for the investor community this month, the company’s decreasing sales on growing inventories, its weak cash position or its convertible debts. The new CEO, who finally agreed to take the job after several months of working on contract basis, and his task to make the stock price multiply, might give a clue at first. Though, the experience of his forerunner can hardly be the best motivation package.

Yesterday, EVCA shares closed the market at $0.022 with an 8.33% price correction on the recent flying up. The trading volume of 8.50 million shares, the highest ever for the stock, was maybe the first strong signal that EVCA has already gained what it could gain without any significant news or developments by the company. The stock was suddenly send for its flight at the beginning of the month, the only identifiable reason for that being its featuring in some trading alerts.

It will not be the first time that the shares are promoted. Last October, a total of $35,000 have been spent on promoting EVCA. The only one-day effect should nor surprise, considering that since inception the business has lost twice more money than it has made from the sales of environmentally conscious cars. Urgent liquidity problems are also on the table, but to point out the positive: since the middle of December Evcarco has finally a new CEO.

His name is Mack Sanders, and he has over 28 years of experience in the automobile business. His salary will be $120,000 per year, and more importantly, his incentive compensation will be based on the company’s financial performance and operating experience. Specifically, Mr. Sanders will get the option to acquire 2.5 million shares of EVCA, at prices of between 20 cents and one dollar per share.

Apart from the implication of a long-term working relationship for the new CEO at Evcarco, whose share price is currently in the range on 2 cents, that stock-based motivation for Mr. Sanders might sound generally encouraging for outside investors. Another issue is if it will be that encouraging for Mr. Sanders himself.

The former CEO of the company, Mr. Dale Long, resigned in August last year. Upon resignation, the company purchased the 13.6 million shares that he was holding at a price of $0.013 each. Though, it looks like he didn’t even get a cent for a share as the company paid him only $35,000 in cash and offset the rest against advances made to him during his employment. Further on, as a part of the agreement EVCA canceled $196,400 of accrued compensation for Mr. Long.

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