Advanced Medical Isotope Corp. (OTCMKTS:ADMD) Blasts Off
Advanced Medical Isotope Corp. (OTCMKTS:ADMD) managed to add an impressive 42.86% to its market cap on an increased dollar volume on Friday, after making yet another boastful announcement.
Investors were obviously impressed with the news that ADMD will be “presenting at two upcoming investor conference”. Evidently, the news that investors would finally be able to see the “capital restructuring plan as well as our regulatory and commercialization roadmap for 2016” was well received – but is there really a reason for optimism?
Yes, the company’s latest published financial report did show a lot of improvement over the last one. However, the numbers in it are still pretty horrifying:
- Cash – $179 thousand
- Total current assets – $213 thousand
- Total current liabilities – $9.9 million
- Annual Consulting Revenues – $24 thousand
- Annual Operating loss – $2.5 million
While the company’s filing claims that it has logged a significant net profit for the reported period, investors would do well to note that $7.8 million worth of that was “Gain on derivative liability”.
While these numbers are far from current, being dated Dec. 2015, they are sort of indicative of the way ADMD does business, and since the company has not bothered filing a more recent report, they are the only information readily available online.
Another thing investors should definitely note is that the company has issued JUST 150 MILLION shares between April 2015 and May 2016, bringing its total shares outstanding to within a hair of authorized cap of 2 billion. However, as of about two weeks ago it also had “2,407,545 shares of the registrant’s Series A Preferred Stock outstanding”. Each of those shares can be converted into 1000 common shares.
Additionally, due do a past investor decision, ADMD‘s management still has a free pass to perform a reverse split at a ratio between 1-for100 and 1-for-300, as long as that split happens before October 15, 2016.
The significance of the above mentioned facts should be self evident. Let the buyer beware.
