Advanced Medical Isotope Corp. (OTCMKTS:ADMD)’s Ascent Continues
After adding another 20% to its value during yesterday’s trading the stock of Advanced Medical Isotope Corp. (OTCMKTS:ADMD) reached a close at $0.006. The last time the company traded at such high prices was way back in September 2014. Since February, this year, the performance of the ticker has been nothing short of amazing and compared to the low of $0.0006 at the moment ADMD are nearly 1000% higher.
ADMD were able to boost investors’ confidence and inspire a much more enthusiastic reaction from the market thanks to their attempts to improve their capital structure. It must be noted that at the end of 2014 ADMD were in truly desperate financial state with:
• $203 cash!!!
• $30,288 total current assets
• $20.2 million total current liabilities
• $24,108 annual revenues
• $1.9 million loss from operations
• $18 million annual net loss
Back then the company had $600 thousand in convertible notes payable and over $11.5 million in derivative liabilities. Between January and April another $378 thousand worth of convertible notes were issued.
The resulting dilution of the common stock has been nothing short of disastrous. The outstanding shares of the company grew from 120 million at the end of 2013 to 1.7 BILLION by the end of 2014. As of April 12, 2015, that number had reached 1.84 BILLION shares.
So let’s see what the company has been doing to remedy its depressing situation. First, on April 23, they announced that an agreement had been reached with ADMD’s primary lender, Mr. Carlton Cadwell, and around $5 million of long-term debt was going to be converted into a new series of preferred shares that will be convertible into common shares at a fixed price of $0.015. In addition, the remaining $1 million of debt held by the Cadwell family and associated entities would be exchanged for a non-convertible 6% note that matures on December 31, 2017. ADMD also announced that $500 thousand of seasoned trade payables were eliminated without causing further dilution.
Seven days later an additional update was published by the company. In it ADMD revealed that back in November and December 2014 an error in calculation resulted in an excess of shares to be issued as a conversion of debt. Now the company is taking actions that could potentially reduce its outstanding debt by $800 thousand.
Despite these positive steps investors should not forget that ADMD are still waiting for their patented Y-90 RadioGel device to be approved by the FDA. Even if the product is indeed approved ADMD will need to raise additional capital in order to commercialize it. The movement of the stock is also going to be influenced by the financial report for the first quarter of 2015 that should be submitted by Friday.
