Provectus Pharmaceuticals, Inc. (OTCMKTS:PVCT) Remains Volatile

At the end of August, Provectus Pharmaceuticals, Inc. (OTCMKTS:PVCT)’s stock was sent on a rally by a couple of optimistic press releases, an interview with the CEO, and a report by OTCBB Journal. The surge was rather strong and the trading volumes suggested that more and more people were paying attention. It culminated in the 52-week high of $1.14 that was registered on September 20, but it was pretty clear that the ticker isn’t really ready for these sort of levels.

The crash seemed inevitable and it came when PVCT wiped out nearly a third of its value in no more than a week. It has managed to regain some of its dignity since then, but unfortunately, the performance from the last couple of weeks has been rather inconsistent. A point hammered home by yesterday’s intraday chart. If you check it out, you’ll see that PVCT started the session strong and although it fell around noon, it seemed poised to close the day in the green. Trading during the last few minutes, however, pushed it down and the closing bell rang when it was hovering around 1.2% below Friday’s value.

Generally speaking, the interest in the ticker has withered since the peaks in September, but yesterday it managed to shift 857 thousand shares racking up a dollar volume of more than $716 thousand which meant that we had to check what’s going on.

Truth be told, quite a lot of things have happened since we last covered PCVT at the beginning of the month. On November 12, for example, they filed the statement for the third quarter of 2013 and it’s fair to say that it solidifies PVCT‘s reputation as one of the more financially stable companies on the OTC Markets. Here’s a recap of the most important figures found in the 10-Q:

• cash: $8.2 million
• current assets: $8.3 million
• current liabilities: $542 thousand
• no revenue
• quarterly net loss: $4.5 million

The net loss is quite big, but it’s primarily due to change in the fair value of derivatives and when you compare the financials above with the results of the second quarter, you’ll see that they have improved their cash position immensely. Although the current liabilities have also mounted, PVCT are unlikely to file for bankruptcy any time soon. As we mentioned, however, despite the solid balance sheet, the stock performance remains shaky.

The reason for this can be found in PVCT‘s press releases. More precisely, in the lack of such. The management team informed us that the company has been granted a new patent by the United States Patent and Trademark Office back on October 24, but since then, we haven’t heard anything related to the development of the PV-10 flagship product. The company website still says that Phase 3 trials should start soon, but there aren’t any other details. It’s no secret that going through the FDA-approval process is a long and complex task, but the lack of any updates certainly isn’t helping the price.

Neither is the issuance of more stock. As we mentioned in our previous articles, PVCT‘s main source of fresh funds over the years has been the selling of shares. We can see that nothing has changed throughout the third quarter – more than 11.3 million new shares saw the light of day between June 30 and September 30 and the continuing losses and lack of revenues mean that the new stock is inevitably having its dilutive effect on the investments of the long-term shareholders.

Speaking of which, they will soon discuss two proposals made by the management team. The first one regards a change of the company name from Provectus Pharmaceuticals, Inc. to Provectus Biopharmaceuticals, Inc. while the second one suggests the reincorporation of the company in Delaware. The new name might reflect the business plan better and the Delaware corporate law is probably more comprehensive, but we’re not sure if these actions will help PVCT finally put their products on the market.

The company does indeed have the comfort of a stable balance sheet and, when compared to other small cap enterprises like Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX) and Fresh Healthy Vending International, Inc. (OTCBB:VEND), PVCT is showing much more long-term potential. Even so, an investment carries its risks and it’s vital that you consider them before making your final decision.