Endonovo Therapeutics Inc (OTCMKTS:ENDV) Dragged Down by Pumpers
A couple of months ago, nobody was really interested in Endonovo Therapeutics Inc (OTCMKTS:ENDV). When we say nobody, we mean it. Between May 1 and June 1, the stock logged exactly $0 in dollar volume.
Some people apparently thought that the liquidity problems can be solved with a promotion. Some money was paid and a few emails hit our inbox at the end of June. The touting did result in a few volume spikes, but it failed to push the ticker north and ENDV soon found itself struggling to stay above $0.50 per share. The pumpers moved on and people turned their back on the stock.
Last week, however, the third parties decided that ENDV deserves another shot. Some more money was spent and some more emails flew around. This time, the selection of promotional newsletters was more diverse and they were all trying to convince their subscribers that as dismal as the performance has been, it is now presenting an excellent entry point.
Whether this really is the case is for time to tell, but it must be said that the stock didn’t really like the second wave of artificial hype. Last week’s trading ended with a 21% crash and after losing another 28% yesterday, ENDV stopped at a brand new 52-week low of $0.32 per share.
So, we’re not really talking about the most resilient OTC stock here, but then again, this is hardly a surprise because ENDV is not exactly the most solid company, either. The latest 10-Q, for example, looks like this:
- current assets: $25 thousand in cash
- current liabilities: $4.7 million
- quarterly revenues: $3 thousand
- quarterly net loss: $480 thousand
There have been no new SEC filings since the Q1 report that you see above and the most recent press release is dated April 8. In other words, there isn’t a whole lot that could be keeping the stock afloat. At the same time, there is one thing that could be exerting a lot of pressure on it.
Over the years, the company has funded its operations with the private placements of notes. The 10-Q doesn’t say what the exact terms of the notes are, but it does mention the fact that during the first three months of 2015, ENDV converted about $328 thousand worth of debt and interest into just over 12.2 million shares of common stock. In other words, it tells us that about 12% of the issued and outstanding stock saw the light of day at an average price of just $0.027 per share.
What does that mean for the current market price? We’ll leave it up to you to decide.
