Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) Spikes Thanks To Marijuana Hype
Apparently the current industry upswing caused by the first legal sale of marijuana for recreational use in Colorado is having a bigger impact than we thought. Even companies like Easton Pharmaceuticals, Inc (OTCMKTS:EAPH) have started to attract attention once again and in yesterday’s session their stock simply exploded.
EAPH added more than 68% to close the day at $0.0027. But what was even more impressive was the traded volume – 133 million shares got exchanged throughout the day resulting in a dollar value of $318 thousand. For comparison at the end of last week just 560 thousand shares got traded.
If you have read some of our previous articles about the company you would know that for more than 15 years EAPH have been unsuccessfully trying to market their VIORRA gel used to treat female sexual arousal disorder. The company hasn’t given up on their flagship product but has been looking around for something else to do. Back in June they announced intention to enter the medical marijuana sector. We don’t know if they have been able to achieve any kind of progress with this plan as the latest PR regarding it came on October 4 and detailed that EAPH will be seeking a distributorship license in Canada.
It may very well be possible that EAPH have scrapped the whole idea because their recent plans have all been connected with the experimental cancer drug “XILIVE”. EAPH bought a 10% ownership of the drug and have a 12 month option to buy the rest. Although the drug has been in development for 7 years very little information can be found on the internet about it outside of EAPH‘s own PR articles. Currently EAPH are looking to start “some form of early stage clinical trial testing program”, in their own words, but how likely that is up to you to decide.
At the start of December the quarterly report for the period ending September 30 was filed. In it EAPH revealed the following financial results:
- $95 thousand cash
- $208 thousand total current assets
- $406 thousand total current liabilities
- ZERO revenues since inception
- $47 thousand net loss
The surprisingly big cash reserves are likely due to the 84 million regulation D common shares sold for proceeds of $136 thousand. With 
this EAPH is getting dangerously close to its authorized amount of 250 million commons shares with 224 million currently outstanding.
this EAPH is getting dangerously close to its authorized amount of 250 million commons shares with 224 million currently outstanding.
In early trading today the stock is showing quite hectic performance sitting 11% down at $0.0024 at the moment. The stock of Medical Marijuana, Inc. (OTCMKTS:MJNA) is also having a hard time losing more than a fifth of its value and sliding down to $0.150. On the other hand Growlife, Inc. (OTCBB:PHOT) is managing to keep its gains for now trading 7% up at $0.214 per share.
