BioElectronics Corp. (OTCMKTS:BIEL) Pops Out of Triple Zeroes
After two days of volume accumulation, on Monday the share price of BioElectronics Corp. (OTCMKTS:BIEL) clambered out of triple zero land. BIEL closed another 52% up, stopping at $0.0013 per share after 170 million shared changed hands yesterday.
The company is a pink sheet that produces and sells pain relief devices which utilize electromagnetic pulses to heal painful areas. Why its stock jumped the way it did over the last couple of market sessions is not so easy to answer, though.
BIEL‘s last press release came on May 14 and did nothing for the share price. The company’s last public filing is its Q1 report that went up on the next day. The report too had no immediate effect on the share price. Here is the brief version of BIEL‘s balance sheet published in the quarterly:
- $48 thousand in cash a/o March 2014
- $691 thousand in total assets
- $9.1 million in total liabilities
- $503 thousand in Q1 sales
- $655 thousand in Q1 net loss
The company is improving upon its revenues gradually, with $1.2 million for all of 2015 and half a million for Q1 of the new year alone. However, it is still generating losses that exceed revenues. The share structure of BIEL is also something traders may want to keep in mind.
As of March 31 the company had over SEVEN BILLION outstanding common shares. This partly explains why in the last month alone BIEL has over a dozen sessions with as many as 216 million shares in daily volume and those sessions never moved the price. Back on December 31, 2014 the company had 6.4 billion outstanding shares. Within the three months that followed, authorized shares were upped from 7 to 8 billion and a new 646 MILLION new shares were issued. Dilution of such proportions is nothing to sneeze at.
The most recent quarterly describes the number of currently outstanding related party loans that were signed with family members of BIEL‘s president. A brief snippet from the filing says more than a thousand paragraphs of explanations ever could: “the corresponding shares to be issued on the conversion of these other related party loans has increased … to 5,583,192,000 at March 31, 2015”.
