Premier Biomedical Inc (OTCMKTS:BIEI) Wipes A Third Of Its Value
While on Wednesday Premier Biomedical Inc (OTCMKTS:BIEI) slid down and registered an already sizable loss of more than 10% yesterday they got simply crushed. The ticker opened at a little over 2 cents per share but by the time of the closing bell it was sitting at just $0.0142. In the span of single session BIEI slashed over 32% of their value.
Despite the massive crash at least for now the company is still trading at prices far above its previous levels – just last Thursday BIEI were deep in the double-zero closing at $0.0027. Will the company manage to avoid a return to those prices though?
The thing that caused the stock to soar up the chart was Monday’s PR. It informed the market that BIEI “have obtained exclusive rights to the recently allowed U.S. patent application, “Sequential Extracorporeal Treatment of Bodily Fluids”. The CEO of the company also stated that they now have a clear roadmap for potentially curing cancer. Reading this definitely got investors hyped up but making investment decisions based solely on hype is never a good idea.
BIEI‘s financial state is nothing short of depressing. The company finished the quarter ended June 30:
• $26 492 cash
• $43 493 total assets
• $420 thousand total liabilities
• ZERO revenues
• $936 thousand net loss
Out of the reported liabilities $133 thousand were in outstanding convertible notes. The limited resources of the company forced it to take on even more convertible debt – in September two more notes were sold. The first one could potentially be turned into shares at a 40% discount while the other is convertible at a 42% discount. One of the directors of the company, Mr. Mitchell Felder, has also been receiving some extremely cheap shares – on October 1 he was issued 3 million shares through the exercise of warrants at $0.00001 per share.
And if you are wondering why exactly are we still using the report for the second quarter of the year, well, that is because the report for the next quarter is still missing. The quarterly should have been completed by the middle of the month but BIEI got a 5-day extension through a notification of late filing.
The impact of the quarterly, when it gets submitted, and the numerous red flags turn BIEI into a risky choice. Do your own due diligence before committing to any trades.
