Propanc Health Group Corp. (OTCMKTS:PPCH) Clears Some Debt
Propanc Health Group Corp. (OTCMKTS:PPCH) managed to retain some of its momentum in yesterday’s trading session by publishing a reassuring piece of PR.
Investors were evidently impressed with PPCH‘s actions, and indeed clearing the company’s convertible debt is certainly necessary. However, what investors should probably consider first is the fact that $120,599 paid on a single note does not really constitute that much of a dent on PPCH‘s overall debt.
As of a month ago, PPCH had:
- Cash – $168 thousand
- Current Assets – $308 thosuand
- Current Liabilities – $2.1 million
- NO REVENUES
- Net Loss – $454 thousand
This more or less means that PPCH has spent the majority of the cash it had on hand back then to repay an insignificant amount of debt.
This seems to be a major problem with this company – in spite of all the boastful PR and praising commentary, there just doesn’t seem to be a way out of the financial bog that PPCH investor value is currently drowning in.
True, PPCH is currently hard pressed to do something about its share structure, because its dilution history is horrendous and that’s an issue that can’t remain unresolved if the company wants to save face:
- as of November 19, 2014 PPCH had 91 shares of common stock
- as of February 16, 2015 PPCH had 192 million shares of common stock
- as of May 15, 2015. PPCH had 335 million shares of common stock
This is certainly not something investors want to see. However, the alternative of spending most of the company’s cash on futile repayments is not really an inviting prospect either.
As it is now, PPCH seems to find itself in a “damned if I do and damned if I don’t” type of situation – which is why investors should be extra careful when dealing with it.
