Onteco Corporation (ONTC) soars 65% after releasing annual report

Posted on: Monday, April 18th, 2011
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Onteco Corporation (OTC: ONTC) got 65% boost in price to 3.3 cents by Monday noon, after filing its 2010 Annual Report.

The company, which until last Friday traded as InfoSpi Inc., reached 1.72 million shares by midday Monday, after Onteco also announced that it was filing disclosed additional information on the appraisal services report from Pellegrino & Associates. The newly filed report provided information on the valuation on the new, patent pending intellectual property of its subsidiary, NexPhase Lighting, Inc. NexPhase is a designer, developer and manufacturer of high efficiency, high quality LED intelligent lighting fixtures.

The Annual Report restated that the Appraisal Services Report, commissioned by Onteco prior to its acquisition of NexPhase, established the value of the new NexPhase intellectual property at about $17.2 million.

The Annual Report addresses that the valuation model indicates the fair market value of the NexPhase intellectual property at a 90% confidence level is between$6.8 million and $41.1 million , with a mean value of $19,710,311 and a median value of $17,216,091.

Onteco President and CEO Dror Svorai commented, “This valuation applies to only a few key market applications of the NexPhase patent, leaving aside a breath of other market applications that we plan to pursue. In other words by this limitation, we believe that the Appraisal Services Report significantly understates the overall revenue potential of the NexPhase patent to us.”

Mr. Svorai concluded, “We hope that this additional disclosure helps to clarify how the value of the NexPhase intellectual property was calculated. It is important to note that this valuation is critical to how we perceive and plan subsequent uses of capital by Onteco going forward.”

Onteco Corporation, headquartered in Aventura, Florida, was founded to develop innovative, practical and cost-effective solutions to some of the most significant environmental challenges facing us today.

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