Cocrystal Pharma Inc (OTCBB:COCP) Regains some ground
Cocrystal Pharma Inc (OTCBB:COCP) surged 11.93% on Friday, as investors learned that the company will employ Jeffrey Meckler full-time as its CEO.
Up until now, Mr. Meckler was an interim CEO for COCP – but evidently he will be getting the job on a non-interim basis effective October 1, 2015. Apparently, as an incentive to work diligently, he will be offered substantial pay bonuses if he does a good job running COCP.
Which is only fair – competent work deserves a reward, and this newly appointed CEO will have to do a lot of that to create COCP investor value. Because, as the company’s latest financial report shows, the COCP‘s current situation is far from peachy:
- cash – $15.78 million
- current assets – $16.32 million
- current liabilities – $7.34 million
- quarterly revenues – $27 thousand
- quarterly net loss – $2.62 million
As the report makes it abundantly clear, the company’s revenues are negligible. So while it is certainly awesome that COCP has that much money on hand to fund its operations, investors must never forget that that money came at the expense of great dilution.
- As of August 8, 2014 COCP had 122 MILLION shares outstanding
- As of August 13, 2015 COCP had 694 MILLION shares outstanding
In that regard, COCP is no different from most other OTC Markets pharmaceutical companies. It presents investors with great potential – that much is obvious. However, how much will that potential take in order to be realized, and how much will investor value suffer in the meantime? Nobody knows.
As usual, it is up to investors to judge the risks involved in committing to COCP stock, but a warning is in order here. Let the buyer be ware.
