MediSwipe, Inc. (OTCMKTS:MWIP) Spikes in the Green After Slump

The last week has been anything but uneventful for shareholders of MediSwipe, Inc. (OTCMKTS:MWIP). The stock had a terrible streak slipping from $0.03 to $0.01 in three sessions on significant daily volumes. This all reversed over yesterday’s session as MWIP closed nearly 45% up and stopped at $0.024 per share.

The first dip from Monday may have blindsided a few people as it took place just as MWIP appeared to put brakes on the slide that took the price down from its September highs of $0.06 per share. The drop was triggered by the release of a filing from the company which was later updated, concerning a share restructuring in the form of a reverse split.

The company intends to effect a 1-for-10 reverse split which would effectively decrease the outstanding share count 10 times down to a modest 44.8 million. However, even after the second corrective filing of the Schedule 14C, the proposed post-split authorized share count would still be as high as 250 million, or a 50% decrease in AS, as opposed to a 90% decrease in OS.

The combination of this change and the fact that MWIP‘s President holds a significant portion of the company’s Class B preferred stock that convert into common shares automatically should the unissued portion of the AS allow for it, appear to have scared a lot of people out of the stock. Some traders interpreted this as an attempt to shake off part of the shareholder base and attract new blood into the stock, in some sort of semi-diabolical scheme but that is a bit of a far fetched idea, even if the reverse split and the potential for dilution it opens up are not exactly the best venue of action.

Yesterday’s surge was also helped along by a press release by MWIP about the launch of a medicinal cannabis cooperative in the state of Colorado.

At any rate, the ticker is still hugely volatile and caution is advised, especially for newcomers, and doing one’s own due diligence is a must, as with any stock.