Innovus Pharmaceuticals Inc (OTCMKTS:INNV) Is Moving Up
After a devastating slide that brought it from a high of around 19 cents to a low 7 cents the stock of Innovus Pharmaceuticals Inc (OTCMKTS:INNV) is now attempting to recover at least some of its losses. Yesterday the ticker jumped up by over 13% for a close at exactly 10 cents per share. When the closing bell put an end to the trading 1.17 million shares had already changed hands, which is almost twice the monthly average volume for the ticker.
There was no immediately obvious reason for the stock’s climb , though. On May 11 INNV published a PR reminding investors about the numerous positive developments since the start of the year but that proved to not be enough – on that day the stock still closed in the red.
INNV, however, is far from the typical biotechnology pennystock. The company has 13 commercialized products and is waiting for an ANDA approval by the FDA for its FlutiCare OTC drug. In addition, it recently acquired the assets of Beyond Human, a company that had $400 thousand in net profits for 2015. As always, though, there are some rather serious red flags that must be taken into consideration.
While INNV project ending 2016 cash flow positive and reaching profitability in 2017 at the moment their financial state is not that encouraging. The annual report for 2015 contained the following numbers:
• $56 thousand cash
• $544 thousand total current assets
• $2.73 million total current liabilities
• $736 thousand annual revenues
• $4.2 million net loss
Seeing the balance sheet it shouldn’t come as a surprise that INNV had to raise the money required for the Beyond Human acquisition through the sale of $550 thousand promissory note. Investors should also keep in mind that last year the company sold six convertible notes for $1.32 million in proceeds. These notes can be turned into common shares at $0.15.
In early trading today INNV is 9% in the green at $0.109.
