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Eco-Petroleum Solutions Inc (OTCMKTS:ECPO) Banking On HIV/AIDS Treatment

Eco-Petroleum Solutions Inc (OTCMKTS:ECPO) Banking On HIV/AIDS Treatment
Written by
Jarrod Wesson
Published on
June 25, 2017
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Eco-Petroleum Solutions Inc (OTCMKTS:ECPO) is the latest stock to surprise the markets recently. The share price was pushed higher on big volume this month. The reasons? The company put out a letter from the CEO and Chairman announcing that its acquisition of Immunotech Laboratories Inc (OTCMKTS:IMMB) is completed. The transaction seems very relevant as ECPO acquired Immunotech's flagship compound ITV-1; "a suspension of Inactivated Pepsin Fragment (IPF)" that has proved to be helpful for the treatment of HIV. In this piece, we will explain you more about this drug and note where it has been tested. But before hearing anything, have a look at the market reaction to this news.SourceBusiness historyECPO was founded on July 28, 2004 in the United Kingdom, and it was not until September 2008 that it acquired access to the US financial Markets. On September 16, 2008, the company entered into a Share Exchange Agreement with Extreme Mobile Coatings, Inc.; a company located in Delaware. The business entity is the result of mergers, acquisitions, and business agglomerations. Thus, the company has used different names. Old market participants may be remembering some of them. So, we note them here:

  • T&T Homes Limited
  • Falcon Media Services, Ltd.
  • Extreme Mobile Coatings Corp.
  • Structural Enhancement Technologies Corp.
  • Extreme Mobile Coatings Worldwide Corp.
  • Environmental Infrastructure Holdings Corp.

Theoretically, companies that result from different transactions and restructuring processes are usually appreciated by market participants. The reasons? The company is said to have very experienced and top employees, as the workers inside the organization were able to maintain their post. Additionally, if the management is the same, the experience accumulated should also be taken into account.The story does not end here. The company is still on fire; buying businesses as in the past. The most recent attempt that we found was Bottled Brands Acquisition Corp. for 8,000,000 shares of the Company’s common stock. Some months later, this acquisition contract was revoked. The case of Immunotech Laboratories, Inc. is different. Thus, we will assess it in a separate part later in the article.We could see in the last annual report that the company executed several splits. Have a look:

"- On November 25, 2008, the Company effected a 2-for-1 forward stock split of its common stock.- On March 12, 2009, the Company effected a 5-for-1 forward stock split of its common stock.- On May 19, 2010, the Company effected a 1-for-100 reverse stock split of its issued and outstanding common stock.- On November 16, 2012, the Company changed its name to Eco-Petroleum Solutions, Inc. and effected a 1-for-500 reverse stock split of its issued and outstanding common stock. " Source

Immunotech On March 9, 2017, the company signed an acquisition agreement with Immunotech Laboratories, Inc. to acquire the company for 60,000,000 shares of the Company’s Series A preferred stock.Why is ECPO so interested in Immunotech?Immunotech is the company researching compound ITV-1; a suspension of Inactivated Pepsin Fragment (IPF), which seems to be, according to recent studies, effective in the treatment of HIV. The company has been able to pass Phase I, II, and III clinical testing in Sophia, Bulgaria. Hence, the most important here are the patents acquired. Have a look at them here. Some other investors on the iHub forum also noted them here. As it was well marked in that forum, "the immunological changes show the immunological effect of IPF. The demonstrated immunological results can open a window for the creation of vaccine treating against viral diseases such as HCV". The company still needs to prove the effectiveness of the IPF with the FDA to be able to sell its products in the US. Hence, we encourage market participants to stay alert on this name. New announcements regarding the approval process may make the share price jump.Is the market big?Yes, it is unfortunately. According to the same press release, the new developments of this company saved many people:

"Seventeen Million (17,000,000) people of the Thirty-Six Million Seven Hundred Thousand (36,700,000) living with HIV were accessing antiretroviral therapy representing 46% of all adults living with HIV, leaving 54% untreated." Source

Letter from the CEOOn June 19, 2017, the market received a letter from the new Chairman and CEO, Harry Zhabilov. In the letter, market participants could learn about the new market direction of the company after the acquisition of Immunotech. Additionally, it noted the new innovations of the US Patented treatment for HIV/AIDS that Immunotech owns, the quality of life improvement, and the potential demand for this product. If you don't have time to read the letter, the following were the most significant words:

"- IMMB is the exclusive license holder of an innovative US Patented treatment for HIV/AIDS and Hepatitis C which has successfully completed Phase III clinical testing at one of the leading Hospitals in Europe.-The treatment "turns on" the immune system to fight Autoimmune diseases which has not been achieved with other therapies. The individuals participating in the clinical trials demonstrated none of the ravaging side effects of many of today's treatments.-The Salvage Patients got better and healthier without sacrificing their quality of life." Source

Additionally, it was noted that the people living with advanced stages of HIV need to pay between $4,000.00 and $25,000.00 per month for the current treatment. IMMB's 18-week treatment would cost "less than $6,000.00 for the treatment cycle, or $1,500.00 per month". Hence, the treatment may help most patients in middle and low income countries.Market ReactionThe most significant development announced was obviously the announcement of the IMMB acquisition. The share price went the following day from $0.009 to $0.05. This represents a 455% return in only one day. The share price closed a little lower at the level of $0.02. But, the fact that the price went so high means that some market participants saw big returns. The market participants, who waited a little, could obtain those returns, as the share price touched $.05 again just two days later.SourceConclusionEco Petroleum Solutions, Inc. announced that the acquisition of IMMB was completed and the market participants ran to enter orders and profit from the share price move. We reviewed the most important assets of IMMB to understand its importance, and found valuable patents obtained in Europe that proves the usefulness of Inactivated Pepsin Fragment (IPF) to treat HIV. That was the reason to explain the share price move. Additionally, the new Chairman and CEO, Harry Zhabilov, explained the transaction, and noted once again the importance of the acquisition and the potential demand for the new compound acquired. However, the share price did not repeat the move, as the information had been already incorporated in the price. Usually, good news is followed by more good news. We encourage subscribers to watch the company closely. We believe that we may learn a lot soon.We will be updating our subscribers as soon as we know more. For the latest updates on ECPO, sign up below!Image courtesy of FlickrDisclosure: We have no position in ECPO and have not been compensated for this article.

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