Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) Explodes Into Motion
tags: INNV
Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) blasted 27.27% up the charts in yesterday’s session, as a direct result of being touted on SECfilings.com
The OTC Markets has seen some weird and confusing developments – but very few of them are as hilarious as a pumper assuming the name of the agency that is in charge of policing the market. And yet, this is precisely what is happening now – as per the disclaimer on SECfilings.com, it is indeed run by a pumper outfit named Emerging Growth Corp, whose current clients include INNV.
True enough, EGC’s dedication to their job seems admirable. From what can be gleaned from the site’s disclaimer, they were paid just $1 thousand about three months ago, and they are still making efforts to popularize INNV – and successful ones at that.
However, successful or no, promotions don’t really add to INNV‘s credibility. In fact the very opposite is true, and although this latest round of promotion may have drawn attention to the company, its current jump can’t be classified as anything more than a hype-driven climb – and we all know that those tend to end badly.
Another thing that doesn’t bode well for INNV‘s chances of retaining its gains is the fact that when all the excitement is passed, there’s nothing to inspire or investors to commit or motivate them to stay committed to the company’s stock. One look at INNV‘s financials is enough to confirm without a doubt that the company’s commercial achievements to date are unimpressive to say the least:
- cash – $32 thousand
- total current assets – $378 thousand
- total current liabilities – $3.56 million
- Q1 2016 net revenues – $224 thousand
- Q1 2016 net loss – $1.55 million
And, speaking of the aforementioned financial report, one would be remiss not to note $1.32 million of INNV‘s current liabilities come in the form of convertible notes issued and outstanding. All of said notes come with provisions that allow the debt to be transformed into shares of the company’s common stock at a rate of $0.15 per share. In the wake of yesterday’s surge, that is almost half the current market price.
So, what does that leave us with? INNV is an OTC Markets underachiever who talks big and may or may not have a product coming down the line. Unfortunately, whatever credibility this may have afforded the company is more or less ruined by the fact that it has both a huge amount of toxic debt and an ongoing paid pump.
Investors should take all of these facts into consideration and act accordingly.
