Easton Phamaceuticals Inc (OTCMKTS:EAPH) Avoids A Severe Crash
At the start of yesterday’s trading the stock of Easton Pharmaceuticals Inc (OTCMKTS:EAPH) was sitting at $0.0096 per share, which as it turned out was its highest point for the day because less than an hour later the ticker registered a new 52-weeks low of $0.0056. Still, EAPH were able to bounce upwards and by the time of the closing bell to return to $0.0095 finishing the session with a loss of a little over 1%. During the day investors shifted the massive amount of 28.6 million shares. For 2015 the company has seen bigger daily volume on only 1 occasion.
Although EAPH are currently trading at sub-penny prices their market cap remains inflated. On June 1, two weeks after the required deadline, the company filed its quarterly report covering the first three months of the year and it showed that despite the numerous initiatives undertaken by EAPH their results are still extremely disappointing:
• $485 thousand cash
• $537 thousand total current assets
• $ 129 thousand total current liabilities
• ZERO revenues
• $81 thousand net loss
At the same time as of March 31, 2015, although in the report it is mistakenly written as 2014, the company had over 867 million outstanding shares out of the 1 billion authorized. This means that if the issuance of shares continues EAPH may be forced to increase their authorized amount.
The next financial report that covers the second quarter of the year was supposed to be filed by the end of last week but even now there is still no sign of it. EAPH have not submitted a notification of late filing disclosing the reason for the delay, either. At the moment their OTCMarket’s profile carries the OTC Pink Limited Information warning sign.
Currently Easton has been focused on its Women’s Health products for Latin America. Yesterday the company announced the appointment of Dr. Jose Tiran Saucedo as the founding member of its Medical/ Scientific Advisory Board. Investors should keep in mind that EAPH and its partner BMV Medica expect the launch of the products to take place in late 2015 or early 2016. The line of generic cancer drugs for Mexico and Latin America should also be launched in the same time frame if everything goes according to plan.
EAPH‘s projections certainly sound promising but it remains to be seen if this time they will come true. For now the stock remains an extremely risky choice that demands extensive research before any trades are attempted. Take into account the various risks and adjust your position in the stock accordingly.
