Zenosense, Inc. (OTCMKTS:ZENO) Make A Small Jump On Record Volume
Yesterday investors showed unprecedented interest in the stock of Zenosense, Inc. (OTCMKTS:ZENO). More than 560 thousand shares changed hands, amount that is over 5 times higher than the average volume for the company. The record volume pushed the stock 6% higher and it closed the session at $0.479. Since mid-September ZENO have been forming a consistent upwards trend and although the daily gains have not been that impressive the stock has so far nearly doubled its price.
ZENO are trying to develop medical detection devices that are supposed to be able to detect deadly bacteria and even cancers in the exhale breath of patients. The company has focused on the detection of MRSA and lung cancer. The devices certainly sound appealing and according to the latest PR that was published on Tuesday ZENO are ready to manufacture 2 pre-commercial devices.
Before you get too excited though we must warn you that there is one massive problem standing before the company – their terrible financials. The quarterly report for the period ending June 30 contained the following:
- $2359 cash and total current assets!!!
- $38 thousand total current liabilities
- ZERO revenues
- $112 thousand net loss
The lack of revenues is not that surprising but the almost non-existent cash reserves cannot be ignored. In order to keep themselves in business ZENO might be forced to start selling more and more common shares and indeed the company has already begun doing so. At the end of July they sold 1.3 million shares for $274 thousand in proceeds. This means that each share was priced at around 21 cents, more than 50% lower than the current market price.
Investors should also take into consideration that on November 4, the day of the last PR, an email alert touting ZENO was also sent. The pump outfit was Stock Commander and they received a disclosed compensation of $2500 for their services.
For now ZENO remains an extremely risky investment. Their grim financials, the fact that their devices are years away from being approved and the paid pump shouldn’t be underestimated. The stock has been climbing the chart for quite a while and chasing after it may not be the best decision.
