Monitor the next 10-Q filing to assess the financial condition of the acquired Hard Rock Ready Mix business and any new debt service obligations. The massive convertible preferred stock structure gives the new controlling shareholder absolute voting control, making a near-term reverse stock split or reverse merger restructuring is likely. Watch for any subsequent S-1 registration or further dilutive financing.
Price Chart
Executive Summary
Omnitek Engineering Corp. (OMTK) acquired all membership interests of Hard Rock Ready Mix, LLC in exchange for 10,000 shares of Series A Preferred Stock, making Hard Rock a wholly-owned subsidiary. Concurrently, the company issued a warrant to Hawkeye Digital Inc. to purchase 16,666,667 common shares at $0.004 per share as compensation for consulting services. The founder and former CEO, Werner Funk, resigned from all officer positions and was replaced by Kevin Jay Hayes Jr., the sole owner of the acquirer's parent entity, who now holds all executive roles and controls the company through super-voting preferred stock.
Key Financial Metrics
Key Facts
- OMTK acquired 100% of Hard Rock Ready Mix, LLC in exchange for 10,000 shares of Series A Preferred Stock.
- A warrant to purchase 16,666,667 common shares at $0.004 per share was issued to Hawkeye Digital Inc. for consulting services.
- Werner Funk resigned as President, CEO, CFO and Secretary on October 1, 2026.
- Kevin Jay Hayes Jr. was appointed President, CEO, CFO, Secretary and Secretary and is the sole owner of Hard Rock Holdco, LLC, which owns 15,000 shares of Series A Preferred Stock.
- Each share of Series A Preferred Stock carries 50,000 votes and is convertible into 50,000 common shares.
- Hawkeye Digital Inc. already held a warrant for 91,666,666 common shares at $0.04 per share.
- The SBA EIDL loan #3317287206 is secured by a senior security interest in all company assets.
Financial Impact
The transaction results in a change of control with massive potential dilution: the new preferred shares (15,000 total) are convertible into 750,000,000 common shares, and the new warrant adds 16,666,667 more. Combined with the existing 91,666,666-share warrant, total potential common share overhang exceeds 858 million shares.
Risk Factors
- Extreme dilution from existing and new convertible preferred shares and warrants.
- Change of control with the acquirer's principal now holding all executive positions and super-voting preferred stock.
- Potential delisting risk if the company cannot meet continued listing standards after the restructuring.
- SBA loan secured by all company assets creates a senior claim.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001096906-26-001496 |
| Document: omtk_ex10z2.htm | 0001096906-26-001496 |
| Document: omtk-20260929_8k.htm | 0001096906-26-001496 |
| Document: 0001096906-26-001496-index-headers.html | 0001096906-26-001496 |
| Document: 0001096906-26-001496-index.html | 0001096906-26-001496 |
| Document: 0001096906-26-001496.txt | 0001096906-26-001496 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d ago | 8-K | $0.0300 $0.0200 | ▲ +33.33% | ▲ +33.67% | $0.0300 (+0.00%) |
Oct 9, 2026 17d ago | SC 13D | $0.0300 $0.0300 | · 0.00% | ▼ −0.06% | $0.0300 (+0.00%) |
Oct 8, 2026 18d ago | 3 | $0.0300 $0.0300 | · 0.00% | ▲ +0.60% | $0.0300 (+0.00%) |
Oct 8, 2026 18d ago | 3 | $0.0300 $0.0300 | · 0.00% | ▼ −0.60% | $0.0300 (−0.00%) |
Oct 8, 2026 18d ago | 3 | $0.0300 $0.0300 | · 0.00% | ▼ −0.60% | $0.0300 (−0.00%) |
Oct 5, 2026 21d ago | 8-K | $0.0400 $0.0300 | ▼ −25.00% | ▼ −25.55% | $0.0300 (−25.00%) |
Oct 1, 2026 25d ago | 8-K | $0.0300 $0.0400 | ▼ −33.33% | ▼ −32.66% | $0.0300 (+0.00%) |
Sep 30, 2026 26d ago | 8-K | $0.0300 $0.0200 | ▲ +33.33% | ▲ +33.51% | $0.0300 (+0.00%) |
US Market Status
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