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By Boyan Angelov
Aug 18, 2014

Puramed Bioscience, Inc. (PMBS) Back To Triple Zero Bottom

Puramed Bioscience, Inc. (PMBS) ended last week with a slide down, lowering the price back to the $0.0001 mark. PMBS's efforts have had no success in maintaining a long-lasting interest in the company. The price of PMBS' stock has been low throughout recent events. The announcements about the company's plans for future development have been insufficient to halt the decline.

PMBS' downfall began after an 8-K issued on July 11 reported about a number of decisions that shareholders seemingly did not approve of. The company announced the issuance of 51 shares of series A preferred stock and 4 million series B preferred stock to CEO Russell Mitchell in consideration to the retirement of 400 million common stock shares. In addition, 500 thousand series B preferred stock shares were issued, split equally to a couple of unnamed investors. This decision was made in consideration of the retirement of 25 million shares of PMBS' common stock.PMBS_chart1508.png

Both the series A preferred stock and series B preferred stock shares were issued par value $0.001. As a result of this share restructure, PMBS' O/S would amount to 1,150,873,676 shares in total. This decision rises the risk of dilution for the company's shareholders and understandably the interest in PMBS' stock declined significantly.

Another red flag around PMBS is the recent pump activity around the company. A promoter by the name of Information Solutions Group, LLC has carried out three campaigns on the company in less than two months' time. PMBS itself paid for these promotions. For all three campaigns, the promoter was compensated $5,000.

Amid these recent events, PMBS has had difficulty attracting any interest toward its stock. The latest item of news on the company that got any positive reaction came out on August 13. In a press release, PMBS announced the completion of the first production branch of the MigraPure® gel. The news about the medicine and the comments made by the company's CEO Russell Mitchell managed to get a measure of interest, as the volume of PMBS traded shares increased in that day's session.

Friday's session saw the price fall back down to the bottom of the triple zero price range on a high volume. This development is a bad sign for PMBS, as it raises the concern that investors may be losing their confidence in the company and trying to dump their shares. Furthermore, the company's financial state does not look good judging by its latest 10-Q for the period ended March 31, 2014 which contains the following:

  • Cash: $2,263
  • Total current assets: $51,8 thousand
  • Total current liabilities: $4,2 million
  • No revenues
  • Net loss: $1,9 million

PMBS_logo.jpgWith a very limited financial basis to operated with and high accumulated net loss and liabilities, investors have further reasons to doubt PMBS' ability to successfully develop its business and get back on the right track.

The recent events around the company call for existing shareholders and investors who are currently evaluating PMBS as an investment option to do their due diligence before deciding on what course of action would be the wisest decision at this stage of the company's development.

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