Fuse Science, Inc. (OTCMKTS:DROP) Steamrolled on Heavy Volume

After slipping over 17% on Tuesday, investors probably hoped for calmer times or even a rebound from Fuse Science, Inc. (OTCMKTS:DROP). Sadly, yesterday’s session saw the return of furious share volumes and the ticker lost another 29%, stopping a notch above $0.02 per share.

The share price has been steadily dropping over the last four months, with recovery sessions and short, level streaks before the next slip. The mid-October red streak shaved 2 cents off the price. Yesterday’s session marked the company’s biggest percentile tumble in quite a while.

The latest bit of PR from DROP came through last Friday and informed that MusclePharm Corp. (OTCMKTS:MSLP) and a number of other investors represented as a group invested in DROP. The details surrounding the investment were published in a filing. The investment is executed through a convertible note worth $700 thousand, with attached warrants for the purchase of up to 23.3 million common shares.

The conversion price and the warrant exercise price are set at $0.06 per share, well above the current price level. However, there is an extra provision in the filing that should DROP get future financing for no less than $4 million, the conversion can happen into securities sold in this financing, and at a 25% discount from their offering price. The money from the $700 thousand round of financing is going to be used for the ‘execution of the Fuse business model’.

Hopefully, it will serve an improved version of it because as of its last report, despite an increase in revenues, DROP‘s quarterly net loss sat at over $3.6 million. It’s understandable that DROP needs money to develop its business but the shaky stock price and the gaping maw of increasing net loss in the millions may scare some.

As usual, investors are advised to do their own research before investing in this or any other company.