One Worthless Spinoff Not Enough For You? Epazz Offers A Second

With the ink barely dry on its press release announcing the spin off of Project Flex(now known as Cooling Technology Solutions, Inc.), Epazz(EPAZ) has announced a second spin based on a vaporous idea.  The company announced a heretofore unmentioned “business” that it would be spinning off that it is calling Project Human Power. What does this business do? Nothing, actually, but it hopes to do something, someday:

Project Human Power is a new mobile power device. The product is not directly in line with Epazz’s core business. Therefore, management believes it is a great opportunity to be the second Epazz spin-off. The company is using the Project Flex spin-off as a learning experience on how to spin-off companies. Project Human Power spin-off will occur after Project Flex.

Project Human Power is a project to develop a mobile power device, which allows I-Phone and other smart phone users to power up their product on the go without needing an outlet or a second battery.

Naturally, the press release would not be complete without some CEO gobbeldeygook about how cutting something worthless into lots of pieces creates value:

“We believe Project Human Power represents a great opportunity to add value to our shareholders as well as provide an incentive for shareholders to stay with the company for the long term with the knowledge many more spin-offs will come in the future. Epazz’s spin-offs will give our shareholders opportunities to receive more stock through stock dividends of spin-off companies,” said Shaun Passley, CEO of Epazz, Inc.

The brazenness of this company and its claims is really remarkable. In another bizarre press release this week, the company trumpeted the high level of short sales in its stock:

[Epazz] today reported the Company’s awareness of shareholders’ frustrations with the performance of the stock over the last few months. Notably, there is data that leads to the possibility that over 100 million shares have been shorted in the month of July alone.

Epazz is proof that there indeed is such a thing as bad press. This is a train wreck we can’t turn away from.

Disclosure: The author holds no position in any stock mentioned


One thought on “One Worthless Spinoff Not Enough For You? Epazz Offers A Second

  1. tfinch

    100 million shares sure sounds like alot, until you consider that there are 2,300 million other shares outstanding

Comments are closed.