This is an interesting one to watch. EONC will pay out a special dividend of $1.6M+ to shareholders of record as of this Friday, March 23 (about .57) in anticipation of an upcoming merger. For anyone that has followed the stock over the years it has had some wild swings-in both directions.
The company is entering a reverse merger with Inventergy Inc. which is based in Cupertino, CA. Inventergy is an IP firm which in addition to its own considerable IP assets, assists other companies with realizing the value of theirs. They are headed by Joe Beyers who led global licensing at Hewlett Packard for numerous years and who steered them to 20X growth in IP income in just a handful of years. He was hailed as one of the top 22 people who have transformed the IP Industry in the past decade by IAM Magazine, a leading publication in the space. In short, Inventergy has put together a phenomenal team which bodes well for the future of the new company which will become Inventergy Global Inc..
Inventergy made a splash in early January not long after the merger announcement with news that they had acquired 500 3G & 4G communications Patents from Panasonic bringing their total to some 660 Patents. This is a company that believes in a model which emphasizes underlying revenue through licensing and other business streams in addition to intellectual property enforcement. The combined company will begin with annual revenues in excess of $20M through Eon’s voice and security phone business for which it also has valuable IP. For those who follow the patent space this is important because the company will be considered a viable operating entity rather than a patent assertion entity.
It is pretty clear given the team they have assembled that they hope to increase value exponentially in as short a time frame as possible. We have dipped our toe in here on a dip and are anxious to see what they can do over the next six months.
As always do your own due diligence and/or check with a trusted financial adviser before investing in this or any other equity.