Propanc Health Group Corp (OTCMKTS:PPCH) Crashes Once More
At the start of the month Propanc Health Group Corp (OTCMKTS:PPCH) got uplisted to the OTCQB Marketplace. At the same time they decreased their authorized shares by 80%, from 10 billion to 2 billion. The announcement of these events helped the stock spike above $0.066 on August 5. Well, since then the performance of the ticker has been nothing short of a total disaster.
On Tuesday and Wednesday, this week, it seemed like PPCH might be reversing its direction but yesterday the positive momentum disappeared completely and the stock wiped 12.5% closing at $0.035, nearly 47% below the high for the month. If you go further back the chart the picture gets even grimmer – those investors that jumped into the stock at the high of over 13 cents from June could now be facing losses of over 73%.
In our articles we have often warned you that it is for the best to use caution when dealing with the stock. PPCH are a biopharmaceutical company in the very early stages of the development of their lead cancer treatment, PRP. In the August 13 PR the company stated that it has completed the round of recent pilot animal trials so a new press release about the results of the trials should be published soon. Will it be enough to help the company recover its losses though?
PPCH is in a rather grim financial state. The report covering the first quarter of the year showed that as of March 31 the company had:
• $168,348 cash
• $308,816 current assets
• $2,160,595 current liabilities
• NO revenues since inception
• $454,250 net loss
Investors have a lot more to worry about – just for the first three months of 2015 PPCH borrowed $490 thousand in notes that can be converted into common shares at a 45% discount. During the same period 135 million shares, or over 1/3 of the 347 million outstanding shares as of July 14, were issued as a conversion of $235 thousand in debt. This means that each share was priced at less than $0.002.
Despite its troubled financials PPCH are continuing to pay the parent company of the Wealthy Biotech Trader a monthly fee of $5000. A further $60 thousand compensation in the form convertible note has also been issued by PPCH. For this the company is often mentioned in the overly-optimistic PRs published by WBT.
Although the company has lost a significant portion of its valuation it still commands a market cap of over $12.1 million. It should be obvious that the red flags surrounding PPCH are extremely serious and that any trades involving their stock should be attempted only after doing extensive due diligence.
