Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) Having Troubles Holding Its Gains
After the explosive start of February when the stock of Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) jumped from 2 cents to close to 8 in just three sessions things have not been going so well. Interest in the company has been declining and so has been the share price posting only a couple of solid green days. Yesterday EAPH wiped 14% of its value and dropped down to $0.04, nearly 50% lower than the hype-induced highs.
It seems that a lot of the promising announcements that attracted investors to the company are not turning out exactly as planned. There have been no updates on the proposed increase in financing through the use of Regulation A offerings despite saying that a decision should be made within weeks. On February 7 EAPH said that the negotiations with the private company that has received an approval for a medical marijuana license from the Canadian authorities were moving fast and once again decision should have been made by the next 10 days.
Well, apparently things weren’t moving so smoothly and earlier this week EAPH warned its investors that it has revised its proposal but nothing is certain. At least we learned that the name of the company they are talking with is Vodis Innovative Pharmaceuticals. The identity of the previously announced leading legal firm that was supposed to help EAPH file their own application for a medical marijuana license in Canada has not been officialy revealed.
By the end of the month the company should file its annual report for 2013 and we will be able to see what their current financial state is. Until then though we have to rely on the report for the quarter ending September 30 and it painted a rather discouraging picture:
• $95 thousand cash
• $208 thousand total current assets
• $406 thousand total current liabilities
• ZERO revenues since inception
• $47 thousand net loss
• $208 thousand total current assets
• $406 thousand total current liabilities
• ZERO revenues since inception
• $47 thousand net loss
The annual report will also reveal if EAPH have any plans to increase their authorized shares. As we said in our previous articles the company had reached 224 million outstanding shares out of the 250 million authorized nearly six months ago.
For now the stock remains a volatile choice and any trading should be preceded by careful planning and sereious due diligence.
For now the stock remains a volatile choice and any trading should be preceded by careful planning and sereious due diligence. Many of the older marijuana pennystocks are starting to slide downwards in the absence of industry-wide catalysts. HEMP, Inc. (OTCMKTS:HEMP) has nearly wiped all of the gains it made at the start of the month. in early trading it is sitting 5% in the red at $0.108. Today may also put an end to the spectacular run made by the stock of mCig Inc. (OTCBB:MCIG). They started plummeting right from the opening bell losing 7% and trading for 73 cents at the moment.
