Is Bioelectronics Corp. (OTCMKTS:BIEL) Making A Comeback?
Bioelectronics Corp. (OTCMKTS:BIEL) managed to add 15% to its market cap on Friday, after bragging that it was featured in an UK mail newspaper health section.
Shameless self-promotion seems to be the only means for BIEL to attract investor attention these days – and, as anyone who has done any due diligence on the ticker knows, there is a good reason for this.
First off, the company’s financial sheets for the fiscal 2015 look positively terrible:
- Cash – $144 thousand
- Total current assets – $992 thousand
- Total current liabilities – $5.7 million
- Sales – $2.3 million
- Net loss – $2.4 million
The only good thing in that sad collection of numbers is the fact that the company is actually making revenues. Unfortunately, those revenues don’t seem to be of the fruit-bearing kind, as the net loss can clearly attest.
Still, it is not the company’s utter failure to even break even that has doomed BIEL to near illiquidity in triple zero land.
No, it is BIEL‘s continued systematic destruction of investor value through issuance of incredible amounts of stock that has done its share structure in. Three months ago, the company had 10.7 BILLION shares of common stock outstanding. A quick check reveals that the company has has issued nearly 4 BILLION shares of its commons stock outstanding during the fiscal 2015, and the majority of those have been printed as a result of conversions “convertible promissory note, have generally been 50% or less of the pink sheet closing price of the common stock on the date the notes or advances are issued”.
This being the case, is it really any wonder that the SEC itself found BIEL‘s activities suspicious? Investors should really take all of these facts into consideration when thinking about BIEL‘s chances of turning this jump into a lasting surge, or even retaining its gains.
