Propanc Health Group Corp. (OTCMKTS:PPCH)’s Slide Continues
Propanc Health Group Corp. (OTCMKTS:PPCH) had many good sessions in the first two weeks of June, but now the ticker appears to be on the wane. Yesterday it lost another 13% and dipped once more below the dime mark.
Truth be told, this descent shouldn’t really surprise anyone. If anything, it’s somewhat odd that the ticker hasn’t plunged down to the bottom of the charts earlier and harder, especially if you consider the numbers given in its latest financial report:
- Cash – $168 thousand
- Current Assets – $308 thousand
- Current Liabilities – $2.1 million
- NO REVENUES
- Net Loss – $454 thousand
However, as bad as the lack of cash on hand, the high liabilities and the net loss that seems to accumulate in spite of PPCH‘s apparent idleness are, those aren’t the biggest red flag in said report. No, dilution is.
To put it bluntly – PPCH‘s share structure history is horrifying enough to make any investor worth his salt cringe:
- 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
And what’s worse is the fact that more than a million dollars worth of the company’s current liabilities are comprised of convertible notes, which can be converted into shares and further dilute PPCH‘s stock at any given moment.
Although it is almost impossible to prove, that’s a very plausible explanation for yesterday’s crash.
Which is why investors should think really carefully before they make any move on PPCH stock.
