Will Advanced Medical Isotope Corp. (OTCMKTS:ADMD) Keep Its Gains?
On March 14 the stock of Advanced Medical Isotope Corp. (OTCMKTS:ADMD) closed at $0.0019 per share while just a couple of days ago, on April 14, it posted a new 52-week high of $0.0096. The chart performance has been truly impressive and although some signs of hesitation have started to appear the ticker is still maintain its record price levels – yesterday the stock closed less than 5% in the red at $0.0084.
It seems that investors are not particularly concerned by the fact that ADMD have still not submitted their annual report for 2015. On March 30 the company filed a notification of late filing stating that it “believes” that the annual report will be completed within the 15-day extension. Well, that period is now over and there is still no sign of the report. As a result ADMD‘s OTCMarkets profile page currently bears the OTC Pink Limited Information sign.
Having the chance to see a more current picture of ADMD‘s financials is of utmost importance because the latest financial report contained some truly abysmal numbers. At the end of the third quarter of 2015 ADMD had:
• $7396 cash
• $42,149 total current assets
• $8.8 million total current liabilities
• $12,054 revenues
• $2.5 million net loss
As of November 19, the date of the quarterly report, the company had nearly maxed out its 2 BILLION authorized shares but it still had plenty of outstanding toxic debt, some of which can be turned into shares at discounts ranging between 40% and 50% while some has a fixed conversion price of $0.001. So, with no more room left for the issuance of common shares ADMD began converting its debt into Series A preferred shares. In the nine months ended September 30, 2015, 995 thousand preferred A shares were issued in exchange for $5.93 million in debt.
Two weeks ago the company increased its authorized preferred A shares from 2.5 million to 5 million and, as the latest Form 4 filings show (here and here), more and more of the preferred shares are seeing the light of day. Keep in mind that each Series A share can be converted into 1000 common shares. At the moment no conversions can be done due to the maxed out common shares but ADMD are authorized to perform a reverse split at a ratio between 1-for-100 and 1-for-300 at any point prior to October 15, 2016.
No matter how excited you might be about the potential of ADMD‘s new IsoPet Solutions division, which is going to adapt the company’s yttrium-90 brachytherapy devices to be used for the treatment of cat and dogs suffering from tumor cancers, you should still use caution. Do your own due diligence and never underestimate the risks of trading a pennystock company.
In early trading today ADMD is down by another 4.76%, sitting at $0.008 at the moment.
