Vantage Mhealthcare Inc. (OTCMKTS:VNTH) Explodes Into Motion

Vantage Mhealthcare Inc. (OTCMKTS:VNTH) stock had been almost illiquid for a whole year, until yesterday’s session doubled its market value on a record 22 million share trade volume.

One quick glance at the company’s latest financial report is enough to figure out what caused this state of affairs. The numbers in said report are indicative of the company’s suspicious activities and the way it does business:

• Cash and cash equivalents – $70 thousand
• Total current assets – $80 thousand
• Total current liabilities – $1.5 thousand
• NO REVENUES EVER!
• Net loss – $2.4 million

Suffice it to say that those do not look like the figures of the company developing “next generation mobile health applications”. No, rather, they make VNTH seem like just another mediocre OTC Markets tech penny stock company – boastful and dubious.

The picture is made even bleaker by the fact that $286 thousand of VNTH‘s current liabilities come in the form of Convertible notes with toxic provisions as bad as “a rate of 50% multiplied by the market price, which is the lowest quoted price for the common stock during the 25 trading day period ending on the latest complete trading day prior to the conversion date”.

Diligent investors will have surely done the math – after Monday’s red close, said notes can now be converted into common stock at a rate of $0.0027 per share. The results of such a conversion and the dumping that may well follow it could crash the ticker in an instant.

Perceptive investors have also probably noticed another detail about yesterday’s jump – VNTH claimed that it has secured $20 million worth of equity funding from a Chinese bank, but no current report on the matter has been filed. This makes yesterday’s announcement nothing more than an unsubstantiated claim, and although it did draw investor attention towards the company briefly, it doesn’t really mean much.

So let’s look at the facts. VNTH is a mediocre-looking company. It has no revenues to date, no achievements to speak of, but enough toxic debt to push it out of balance. All it really has going for it are some recent unsubstantiated claims that it will receive funding, but no proof of the deal.

Although it should be obvious by this point, it bears repeating – VNTH is a dangerous stock to play around with. Let the buyer be ware.