Bioelectronics Corp (OTCMKTS:BIEL) Hovers Around $0.001
tags: BIEL
After sitting flat for five sessions in a row yesterday the stock of Bioelectronics Corp (OTCMKTS:BIEL) finally made a move. Unfortunately for the shareholders of the company the ticker plunged downwards and wiped 10% of its value, closing just below $0.001 per share. The drop took place on a trade volume of over 102 million shares showing that investors paid increased interest to the stock. Will BIEL retain the market’s attention and will they be able to finally start climbing up the chart?
Well, on Wednesday the company is going to have its next meeting with the FDA regarding the pathway for receiving market clearance for its ActiPatch device. If this time BIEL finally receive a positive response it could reinvigorate investors. The problem is that the red flags surrounding the company won’t get any less serious.
BIEL‘s financial state is simply atrocious. The company finished the first quarter of the year with:
• $22 thousand cash
• $939 thousand total current assets
• $5.87 million total current liabilities
• $528 thousand sales
• $457 thousand net loss
During the three months covered by the report nearly 400 million fresh shares saw the light of day – 63 million shares were issued for consulting services while 332 million were issued as note conversions. As of March 31, 2016, BIEL had 11.1 BILLION outstanding shares out of the 15 BILLION authorized.
The dilution may not be coming to end anytime soon. According to the quarterly the convertible notes owned by IBEX, LLC., company that is actually owned by the daughter of BIEL‘s President, can be turned into more than 12.3 BILLION shares while the shares issuable under the other related party loans of the company had increased to 8.4 BILLION.
When contemplating whether to put any money into the company or not you might want to also take into account the fact that back in February the Securities and Exchange Commission decided it is in the best interest of the public that “public administrative and cease-and-desist proceedings” to be instituted against BIEL. The official complaint alleges that BIEL and related persons and entities to the company have been involved in the unlawful distribution of securities and inaccurate public disclosure.
In early trading today the stock is jumping up and down but is currently sitting 11.1% in the green at $0.0011.
