Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Back on the Green Track

Yesterday Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) somewhat unexpectedly surged by nearly 23% to come to a close of $0.86 per share. Daily share volume remained almost identical to Wednesday’s, at 3.28 million shares traded.

The ticker that was barely traded over the better part of this summer has been kickstarted into life by a couple of articles highlighting the beneficial ownership of NYSE-listed Opko Health, Inc. and personally by Opko’s CEO, Dr. Phillip Frost. The stakes of Opko and Mr. Frost originated long before the media focus they received that zapped BZNE into active trading once again.

It seems the name of Dr. Frost was sufficient indicator for many investors that BZNE has great potential, as despite some heavy dips in the previous weeks BZNE is once again rushing up. This week the company announced an twofold increase of its authorized common shares, up to 200 million. Some traders on discussion boards were concerned about the possible future implications of the increase, hinting at possible dilution.

Only yesterday BZNE published an 8-K detailing that last week the company issued just over 4 million common shares, clearing convertible notes. The unpleasant part is that the notes’ conversion price was set to $0.20 per share. At the price levels from the start of last week that was already a discount of over 50% from the market price. At BZNE’s last closing price, the conversion discount is over 75%. Obviously, the news didn’t slow anybody down as BZNE climbed by nearly a quarter on steady volume.

Other OTC stocks that moved in double digits yesterday include Growlife, Inc. (OTCBB:PHOT), who closed 12% up on increased volume. Multi-Corp International, Inc. (OTCMKTS:MULI) had a freak day of trading, closing 93% up and shifting hundreds of times its average volume yesterday.