Aethlon Medical, Inc. (OTCMKTS:AEMD) Climbs Higher On Record Volume
Yesterday the stock of Aethlon Medical, Inc (OTCMKTS:AEMD) continued storming the chart but this time investors showed such a tremendous interest in the company that it placed amongst the very top of the most traded pennystocks for the day. The unprecedented amount of close to 40.5 million shares changed hands resulting in a dollar value for the session of $25.6 million. The massive buying pressure pushed the ticker to a new 52-week high of $0.72 per share.
Despite the impressive numbers though the stock’s performance was not that encouraging. It is true that it surged to a new record price but it began slumping almost immediately after that and actually closed below its opening price at $0.057. Still, AEMD registered a gain of nearly 9% which is quite respectable.
Aethlon has been attracting investors since October when the company announced that their Hemopurifier therapy is being used as part of the treatment of an Ebola patient at the Frankfurt University Hospital in Germany. On November 14 they announced that the patient was successfully cured from the deadly virus while today, a couple of hours before the start of the session, a PR was published stating that the patient has now been discharged from the hospital. The media exposure of the company is also reaching record levels when last Friday their product was featured as one of the 25 best invention of 2014 according to the Time Magazine.
Undeniably the Hemopurifier has enormous potential in the treatment of several serious diseases not just Ebola. Before you get too excited though there are some things that must be taken into consideration. AEMD is still a pennystock and their financials are not that encouraging. The quarterly report for the period ending September 30 revealed the following numbers:
• $526 thousand cash
• $892 thousand total current assets
• $3.38 million total current liabilities
• $479 thousand revenues
• $601 thousand operating loss
The company has a significant working capital deficit of more than $2 million while the accumulated deficit is approaching $80 million. Another serious red flag is the continued issuance of shares as conversion of convertible notes or private placements.
At the end of September AEMD‘s current portion of the outstanding convertible notes amounted to more than $484 thousand. If you take a look at the subsequent events section of the quarterly report you will see that the company has since then issued new convertible notes in the aggregate amount of $527 thousand that have a conversion price of $0.112. In the same section it is also listed that over 16 million shares were issued at just $0.042 through the exercise of warrants. At the same price another 3.5 million shares saw the light of day as a conversion of notes.
With new positive announcements about the usage of its device AEMD might be able to keep most of its current price gains. Even if that is the case you should still account for the millions of shares issued at discounted prices that could affect the chart movement of the stock. Do your own due diligence and adjust your position accordingly.
