Oxysure Therapeutics Inc f/k/a/ Oxysure Systems Inc (OTCMKTS:OXYS) Breathes Again
Oxysure Therapeutics Inc f/k/a/ Oxysure Systems Inc (OTCMKTS:OXYS) filed its 10-Q for the quarter ended September 30 on November 16 and it must be said that its performance since then has been rather interesting. The ticker suddenly found the strength to push itself away from the bottoms it was scraping and a couple of days after the publishing of the report, it reached $0.27 per share. This, somewhat predictably, was followed by a few sessions of hesitation, but it would appear that it has managed to gather enough momentum for another run. Yesterday, it gained a rather impressive 18% and it climbed back to $0.26 per share.
Clearly some investors like the Q3 report and the management team appear to be just as optimistic. In fact they reckon that the company’s financials are so strong, that the stock can cut it on one of the national exchanges. Earlier today, they said that the change in the name from Oxysure Systems to Oxysure Therapeutics will somehow help them with the up-listing process. But are things really as optimistic as they appear?
Well, here’s a summary of the 10-Q’s most important figures:
- cash on hand: $6,312
- current assets: $3,722,161
- current liabilities: $2,247,620
- quarterly revenues: $1,138,380
- quarterly net loss: $1,380,753
The revenues have grown on a year-over-year basis and there’s plenty of restricted cash which, once available, should make the balance sheet look a lot better. The massive net loss, however, is a bit of a worry and the same might be said about the convertible notes.
During the third quarter alone, OXYS picked up nearly $1.7 million worth of convertible debt and although it can be turned into shares at “only” a 7% discount, it could still put some dilutive pressure on the ticker. In fact, it seems to be doing just that. Of the 2.2 million shares issued between July 1 and September 30, nearly 1.8 million saw the light of day as a conversion of debt.
Of course, if they manage to complete the long-awaited up-listing to one of the national exchanges, OXYS will probably have an easier time raising capital. They need to increase the share price in order to do that and they figured out that the best way to do it is through a reverse split, the ratio of which will not exceed 1-for-100. That is a pretty standard procedure among penny stocks who want to go on the big boards. What is strange about OXYS‘ case, is that along with the split, the management team also decided to up the authorized count from 100 million shares all the way to 500 million.
Another thing that we don’t normally associate with NYSE and NASDAQ stocks is paid promotions and unfortunately, there seems to be quite a few of them around OXYS. The latest email was sent by Winston Small Cap and it cost some third parties $5,000. The longer term performance shows pretty definitively that the pumpers aren’t doing the stock any favors.
About thirty-five minutes after the opening bell, OXYS is sitting at $0.241 per share (7% in the red).
