Ener-Core, Inc. (ENCR) Company Review
Ener-Core is the designer and manufacturer of a groundbreaking technology which enables the conversion of waste gases from a wide range of industries directly into clean power. The waste gas to energy market is a 75 billion dollar equipment market. Ener-Core provides the opportunity for industries to no longer have to spend money complying with environmental standards and instead use these gases to generate and/or sell energy, profitably.
Ener-Core, Inc. is a company that develops designs and manufacturers different products which are based on technologies surrounding power oxidization. Its headquarters is located in Irvine, California. The company produces products for customers in the United States, as well as internationally. The technology used by the company is used in replacing a combustion reaction through a reaction to chemical oxidation, usually occurring at lower temperatures.
Ener-Core, Inc. is the manufacturer of products including EC333, which is a 333 kW power station, and Ener-Core Power Station EC250, a 250 kW power station. They are also currently engaged in the development of its third product to be sold commercially, the KG2-3GEF/PO. The products can be availed of through different distributors, as well as to end users. In manufacturing these products, the company uses the acceleration of the naturally occurring process of gas oxidation by means of the injection of hydrocarbon gases to a highly controlled, high pressure, high temperature, and oxygen-rich environment.
The process of oxidation is a chemical reaction that is commonly and naturally observed. It happens when a particular substances comes in contact with natural oxygen for an extended period of time. Ener-Core, Inc.’s Power Oxidizers have been primarily designed to enable the operation on gases which have a very low density on energy. While these oxidizers work on waste gases, they can also be operated on natural gas that is commercially available, as well as other hydrocarbon gas products, or even a combination of commercially available natural gas, waste gases, or other hydrocarbon gas products.
In July of 2105, the company has announced that they will implement a 1 for 50 reverse stock split of the entire company’s issued, authorized and outstanding stock. This is done as preparation for the company’s proposed listing of common stock on the natural securities exchange. Both of these features are considered as contractual obligations of the Company pursuant to an agreement on securities purchase.
According to representatives of the company, this move is important towards the advancement of the corporate development of Ener-Core. It will also enhance their company’s visibility, and may also offer better stock liquidity. In completing the commitment under the recent agreement, the company is also reflecting appreciation for the support given to them by their stockholders who also participated in the said transaction.
With this agreement on Reverse Stock Split, each 50 shares of common stock (issued and outstanding) will be turned into 1 share of common stock (issued and outstanding). At the same time, the authorized common stock shares will then be reduced to 4,000,000 shares from 200,000,000. All of the fractional shares will then be rounded up, which means that after this Reverse Stock Split is implemented; the company will end up having about 2,463,919 common stock shares that are outstanding.