Is TNI Biotech Inc (OTCMKTS:TNIB) In For A Breakthrough?

There are many small (as well as not so small) cap companies trying to develop some sort of treatment for AIDS, cancer and a host of other terminal diseases. Generally speaking, none of them has been fully successful in their quest and we’re still waiting for a magic pill (or pills) that could potentially rid the world of the nasty maladies that continue to take lives every day. We decided to evaluate the chances of TNI Biotech Inc (OTCMKTS:TNIB) becoming the venture that could give humanity the chance to fight back.

Things are not off to the best of starts. A brief research shows that TNIB‘s corporate headquarters address (down to the number of the suite occupied) is offered as a virtual office which, you would agree, puts some question marks around the company credibility – not something you want to see from a publicly traded venture that has set itself the task of saving hundreds of thousands of lives.

Things are less than perfect when you check into Ms. Noreen Griffin, TNIB‘s CEO’s past as well. She was once at the helm of Global Environmental Energy Corp (OTCMKTS:GEECF) – an energy/oil and gas penny stock that hasn’t filed any reports since 2009 and is currently deep in triple zero territory. While Ms. Griffin was there, there was apparently some controversy and according to this article, she was facing a $140 thousand judgment because of some dubious deals regarding the sales of garbage-to-energy incinerators.

A thing that worries us more, however, is to be found on TNIB‘s own website. Right now, there is a video interview with Ms. Griffin on the homepage in which she speaks about the milestones achieved by the company and about the bright future. A minute and a half into the recording, she says that TNIB have signed a number of contracts and that the delivery of immunotherapies should start by the end of the first quarter of 2013. She does say that one of their main goals is to keep the treatments as cheap as possible so that their products can be accessible for most of the people but even so, TNIB‘s latest 10-Q, the one for the second quarter of 2013, reveals that not even a dime in revenue has been achieved since the inception of the company.

That said, with the rest of the figures looking so dreary, we can see why. Here’s what TNIB had as of June 30:

• cash: $231 thousand
• current assets: $262 thousand
• current liabilities: $2.1 million
• quarterly net loss: $24 million

The disappointing financials probably played their part in the ticker’s drop from around $5 per share back in June to the $1.70 low registered a couple of weeks ago. Recently, the share price got boosted by some news regarding FDA meetings and plans for phase III trials, but TNIB displayed a correction on Friday, registering a massive trading volume, which might indicate some further drops in the near future.

On the bright side, they do have the patents ready and if they manage to raise some much needed cash (which could turn out to be a tall order), they might just be onto something. Still, we reckon that the withering glimmer of long-term potential is far from enough to justify the $155 million market cap which, in turn, makes the danger of sudden and violent corrections all the more real.

The interesting business plan and the fact that TNIB have already been granted the patents for some of their products could also draw the attention of the paid pumpers and that, as you know, will almost certainly wreak havoc with the chart movement. How bad can it be? You can see for yourself from Arch Therapeutics Inc (OTCBB:ARTH)’s chart on the right.