Is Bioelectronics Corp. (OTCMKTS:BIEL) Up To its old Tricks Again?
Bioelectronics Corp. (OTCMKTS:BIEL) had an impressive jump yesterday, but it doesn’t look like this state of developments will last.
The last two weeks have been rather exciting for BIEL investors. At last, the ticker’s shares started moving around a bit, even if the ticker didn’t really manage to maintain the price high it had reached after its initial jump.
Still, that turn of events should be no surprise to any investor who’s done any due diligence on the company. Since it is getting a lot of attention because of the recent FDA-related developments around its product, it was natural for BIEL to become volatile. However, it was also clear as day that any gains the ticker made were unretainable. Why?
Because even if you count the recent reclassification of its product as a positive development, the company has scant few other things that investors can really be optimistic about. Its latest financial report for the period ended June 30, 2015 looked like this:
- Cash – $29 thousand
- Total current assets – $668 thousand
- Total current liabilities – $5.46 million
- Revenues – $675 thousand
- Net loss – $732 thousand
And if you think that’s unimpressive, wait until you get a load of the company’s BIEL‘s share structure.
Suffice it to say that at the end of Q2 2015, BIEL had 7 billion SO. 1.6 billion of those shares were printed in 2015 alone, and most of those shares have come into existence, as a result conversions of toxic debt.
Care to guess who’s most likely to have converted their notes into shares and dumped them on the market? That’s right – family members of the company’s own president and CEO Andrew A. Whelan, who own the majority of those notes.
Of course, there’s no real way to know if they are in any way responsible for what happened last time the ticker jumped and for what is happening to BIEL right now.
However, it should be noted that the company’s shares authorized are currently as high as 11 BILLION – so if they haven’t already done so, noteholders should have plenty of opportunities to convert debt at ridiculous discounts, dump massive amounts of the resulting shares on the market and make a sizable return on their investments, while simultaneously plunging the ticker right back down into triple zero illiquidity.
Judging by today’s red opening, they may be exploiting one such opportunity even now.
