Premier Biomedical Inc (OTCMKTS:BIEI) Shoots Up Once More
Despite several disappointing sessions it seems that the hype around Premier Biomedical Inc (OTCMKTS:BIEI) is still quite strong. So strong actually that after yesterday’s intense trading the company closed nearly 42% in the green at $0.022 per share. More than 21 million shares changed hands during the session, volume that is close to three times bigger than the monthly average. Will the momentum be as strong during today’s trading though?
BIEI first caught the attention of the market with their PR from November 16. The company announced that it had obtained the rights to the U.S. patent application, “Sequential Extracorporeal Treatment of Bodily Fluids”. In the PR the CEO of BIEI expressed his believe that they now had “a clear roadmap for potentially curing cancer”. It is understandable that after seeing such a statement investors eagerly rushed towards the stock of the company.
The problem is that there are several extremely dangerous red flags that must be taken into consideration. In our previous articles we warned you that there are convertible notes outstanding that could be turned into common shares at significant discounts to the market price ranging from 30% to 42%. The financial state of the company didn’t inspire much confidence either.
Yesterday BIEI finally submitted their report for the quarter ended September 30 so let’s take a look and see what the company had less than two months ago:
• $73 thousand cash
• $87 thousand total current assets
• $516 thousand total liabilities
• ZERO revenues
• $189 thousand net loss
For a company that is striving to cure cancer to have a little over $70 thousand in cash reserves is extremely discouraging. For the first nine months of the year BIEI‘s net loss stands at $2.39 million compared to less than $800 thousand for the same period last year.
But what about the convertible notes? At the end of September BIEI had 26.3 million outstanding shares, which is a modest increase from the 22.1 million outstanding shares at the end of June. Before you breathe a sigh of relieve though you might want to scroll down to the subsequent events section of the report where things get really scary.
Between October 1 and November 17 a total of 39.5 million shares were issued as a conversion of around $95 thousand worth of convertible notes. As of November 20 the outstanding shares of the company had surpassed 60 million. At the end of the third quarter BIEI had around $133 thousand in convertible notes so the conversions could continue for a while longer.
The massive amount of discounted shares could devastate the stock if they get unleashed on the open market. Even if you believe in BIEI‘s potential putting any money on the line without doing your own research may be extremely dangerous.
