Endonovo Therapeutics Inc (OTCMKTS:ENDV) Corrects Once More
tags: ENDV
Last Monday and Tuesday the stock of Endonovo Therapeutics Inc (OTCMKTS:ENDV) got simply crushed wiping 20% and 49% of its value, respectively. That is right, in the span of just two session the company saw its shares drop from an opening price of 35 cents all the way down to a close at 13 cents.
Following such a devastating depreciation many stocks manage to bounce and to recover at least some of their losses. Helped by a new PR ENDV‘s stock did exactly that on Thursday when it surged by close to 31% and climbed to $0.17 per share. Unfortunately, whatever positive momentum had formed around the stock vanished entirely on the very next day and ENDV closed the last session of the week with a 6% correction at $0.16.
While pinpointing the exact reason for the abysmal drop of the stock may not be easy doing even a cursory due diligence on ENDV will reveal a plethora of extremely serious red flags. Let’s start with the financial state of the company. According to the latest quarterly report as of March 31, 2016, ENDV had:
• $109 thousand cash
• $246 thousand total current assets
• $9 million total current liabilities
• ZERO revenues
• $903 thousand net loss
The sizable net loss, lack of revenues, and the mind-boggling working capital deficit of approximately $8.75 million show fail to inspire much confidence. This is just the start, though.
If you take a look at the disclaimer on the official website of the Wealthy Venture Capitalist(TWVC) you will see that TWVC has been compensated directly by ENDV with a $150 thousand convertible note. The terms of this note are not disclosed, though, and searching through the latest financial reports also provides little clarity. Well, that shouldn’t be such a surprise considering the fact that just two weeks ago EDNV submitted an 8-K filing for a $250 thousand convertible note that was issued way back in November 2015. Apparently ENDV didn’t think that a quarter million note convertible into shares at a 25% discount constituted a material enough event to be reported.
On June 23 the PR issued by the company, which was the catalyst for the stock’s surge on that day, announced that ENDV had received a preliminary injunction by the Superior Court of California, County of Los Angeles, against Kodiak Capital, BMA Securities and COR Clearing. As a result the aforementioned parties will not be able to sell, transfer or dispose of any unpaid for shares tendered under the company’s Equity Purchase Agreement with Kodiak. While this is definitely an encouraging step the limited resources of the company could very well force it to once again look for outside sources of funds.
Trading ENDV‘s stock should be preceded by extensive due diligence and careful planning. Do not underestimate the risks and never put unaffordable sums of money on any of the various pennystocks out there.
