Ecolocap Solutions Inc. (OTCMKTS:ECOS) Is A Penny Stock That Can Move

Volume registered in Ecolocap Solutions Inc. (OTCMKTS:ECOS) increased sharply in July, once the company communicated that input operations would commence in this month. The news was definitely a catalyst for the stock. We also found out that ECOS is going through a phase of deep changes that may be very beneficial. The CEO was recently changed and a re-organization was put forth. As we know that this sort of announcements tend to be appreciated by the market, so we investigated the company. Have a look at the recent share price action.SourceBusinessThe company was founded on March 18, 2004. The objective of ECOS is explained in the following terms by the company.

“The Ecolocap compost technology redirects all organic waste into a valuable byproduct. The byproduct includes organic fertilizers, chicken, fish feed, or biomass in the form of a dry powder or pellet that can be efficiently stored, transported, and spread.” Source

Recent DevelopmentsOn December 23, 2016, EcoloCap put out that it has entered into a supply agreement with ECOS BIO-ART LLC, a Delaware Company, to make and supply equipment, and products for resale, or lease to Lakeshore Recycling Systems LLC located in Illinois. The deal was worth $687,375.00. It can be seen in the stock chart that this news was celebrated by the market, which pushed up the share price dramatically. The move made sense, as the news showed that the company was growing. After the jump in the share price, some sell orders appeared, as some traders book profits, which made the share price decline.Most recently, on June 14, 2017, EcoloCap issued a press release stating that it intends to start input operations at the end of June 2017. The 1st installation is designed as a framework that will be copied onto future installations across the country. Operations will begin with a contribution of fifteen tons of food that will be converted into a high-grade manure and natural compost ready to ship to local organizations for distribution and mixing by fertilizer suppliers. In our opinion, this news was responsible for the volume increase that we saw in July 2017. The market knows that the company will be delivering better results in the near future, as input operations have commenced.New CEOAdditionally, the company recently put out that some changes were occurring. On June 1, 2017, James Kwak replaced Michael Siegel as the new president and CEO of the company. The market tends to appreciate new directors being elected or change of CEO. James Kwak expressed:

"With Mr. Siegel's retirement, the board felt it was necessary to re-structure our organization so Ecolocap could focus on everyone's strengths and weaknesses. In addition to our previous management, we have added strong members to our team that will help us continuously be ahead of the curve and create new opportunities." Source

In addition, an update was made regarding the deal with Lakeshore Recycling Systems:

“EcoloCap has also structured a new partnership with Lakeshore Recycling Systems. The LRS partnership will allow EcoloCap to deploy the first installation of the ECOS Bio-ART technology at an LRS facility in Chicago. The new technology will ultimately lead to a more green and sustainable Earth by using biological fermentation technology in a patented, in-vessel aerobic digestion.” Source

James Kwak explained the new deal and the technology acquired:

"This technology not only applies to the waste industry, but has many beneficial applications towards the farming/agricultural sectors, industrial waste streams and human bio-solids remediation. All of these industries face environmental and regulatory issues that we feel we can make a large impact." Source

ConclusionIn this piece, we saw how ECOS is growing through agreements with other companies. The deal with Lakeshore Recycling Systems LLC is just a start of more big deals to come. Access to new assets and know-how is acquired thanks to these agreements, thus the market celebrated this news. On top of it, restructuring efforts were put out. They show that the company is trying to transform the organization now that operations commenced. There is much more financial information to assess in the last annual report. We believe that the readers should check it. From the news put out, the company seems to be growing at a fast pace and the market is reacting positively. If the good news continues, the share looks set to continue its upward path. Hence, be alert on this name.We will be updating our subscribers as soon as we know more. For the latest updates on ECOS, sign up below!Image courtesy of Dovetail Partners via FlickrDisclosure: We have no position in ECOS and have not been compensated for this article.