Advanced Medical Isotope Corp. (OTCMKTS:ADMD) Crashes
On April 14 the stock of Advanced Medical Isotope Corp. (OTCMKTS:ADMD) registered its current 52-week high of $0.0096. Maintaining such high price levels proved to be nearly impossible, however, and since then the ticker has been rather unstable. Yesterday the company suffered another harsh blow – at the end of the session the stock had wiped nearly 11% of its value, closing at $0.0065.
Even after this sizable loss ADMD still commands a market cap of approximately $13 million. We will leave it up to you to decide whether this valuation is justified after taking a look at the financial report covering the quarter ended September 30, 2015 – back then ADMD had:
• $7396 cash
• $42,149 total current assets
• $8.8 million total current liabilities
• $12,054 revenues
• $2.5 million net loss
The financials found on the balance sheet are simply atrocious. And if you wondering why we are still relying on financial information that is now over 6 months old, well, the answer is quite simple – ADMD‘s annual report for 2015 is still missing.
It was supposed to be filed by the end of March but through a notification of late filing ADMD received a “grace” period of 15 days. We are currently over two weeks past even that deadline without any sign of the report and as a result the OTCMarkets profile page of the company was marked with the Pink Limited Information sign.
Apart from providing a more recent picture of ADMD‘s financial results the annual report should have also allowed investors to see just how many fresh Series A shares have been issued in the past several months. Let’s remind you that last year ADMD maxed out their authorized amount of 2 billion common shares and as a result they began using their Series A preferred shares, each of which can be turned into 1000 common shares provided there is sufficient room for the conversion.
In the first nine months of 2015 close to a million preferred A shares were issued as a conversion of $5.93 million of debt. Despite this significant reduction as of September 30, 2015, the company still had over $2.3 million in outstanding convertible notes. The conversions into preferred shares could continue for quite a while – at the end of March the authorized amount of preferred A shares was increased from 2.5 million to 5 million.
In a recent interview ADMD‘s CEO stated that a new de novo application for the company’s Y-90 RadioGel device will be submitted with the FDA in the third or fourth quarter of the year. This will be ADMD‘s third attempt to receive marketing clearance for the product. As for their intentions to enter the veterinary oncology market in a PR published on April 22 it was announced that in the next 30 days product should be shipped for a study that is recruiting cats for the treatment of feline sarcoma.
Without a more recent catalyst to keep the hype going ADMD‘s stock might continue to decline. Don’t underestimate the risks and keep in mind that the company is authorized to perform a reverse split at a ratio between 1-for-100 and 1-for-300 at any time prior to October 15, 2016.
