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<\/p>\ntags: BIEI <\/p>\n
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On Tuesday the stock of Premier Biomedical Inc (OTCMKTS:BIEI<\/a>) got devastated – in just six and a half hours it wiped more than 41% of its value dropping all the way down to a close at $0.014. Yesterday, however, the sentiment displayed by investors changed drastically. Thanks to an intense buying that brought the daily volume to 11.5 million shares, the biggest daily volume seen by BIEI<\/a> <\/strong>since the very first days of the year, the stock was able to bounce right back up and to close 50% in the green. Will this turn into a more prolonged recovery, though?<\/p>\n Yesterday’s positive performance was sparked by a new PR that was issued by BIEI<\/a> <\/strong>before the start of the trading session. In it the company announced that its patent pending anti-cancer antibody, PBI-5D3H5<\/em>, had demonstrated superiority based on tumor volume and mouse survivability in a multy-faceted mouse test compared to a commercially available competitive drugs. The announcement is indeed encouraging but jumping in without doing the required due diligence could be quite dangerous.<\/p>\n Let’s start with the financial state of the company at the end of the first quarter of the year. According to the quarterly report as of March 31, 2016, BIEI<\/a> <\/strong>had:<\/p>\n • $39 thousand cash The balance sheet can hardly inspire any confidence but thanks to a stock purchase agreement BIEI<\/a> <\/strong>can raise up to $2 million through the sale of shares to Redwood Management, LLC. Investors should note, however, that these shares will be priced at a 20% discount to the lowest sale price of the company’s stock during the 5 previous business days. If you open the S-1 registration statement that was filed on June 24 you will see that a total of 50 million shares are being registered for sale by Redwood. Of that amount 16.9 million shares cover the conversion of a note issued on May 27 with a face value of $105 thousand while the rest are included specifically for sale pursuant to the purchase agreement.<\/p>\n
• $55 thousand total current assets
• $360 thousand total current liabilities
• ZERO revenues
• $415 thousand net loss<\/p>\n