Yesterday, PWRM recorded a total gain of 52.17% at the end of the day, closing the market at $0.035. Trading volume was more than eight times the average with 14.46 million shares traded. Over a week after the company filed its pretty disastrous third quarter financial report, a promoting firm got 1 million restricted shares from the company to advertise PWRM stock.
The promotion can be called quite successful, for a company with no revenues this year, still pending products and over $5.8 million in debts as compared to around $20,000 in total assets. Moreover, the newsletter only pointed out the announced in September Power3 Medical plan of merger with Rozetta-Cell Life Sciences, Inc., claiming that the merger is expected to be completed this months.
Admittedly, such news could have strong PR effect on PWRM share price when announced, even if it remains questionable if the new acquisition will make a fundamental change in the business of Power3 Medical. Thus, today PWRM will probably remain on the watch list of many traders eager for quick profits, though they should be aware that the 8-k of the company does not mention November as the month in which the deal should be completed.
Instead, it says that the planned merger should be either completed or terminated by December 31, 2010. Further, according to the terms of the agreement, each share of Rozetta-Cell will be converted into the right to receive ten newly-issued shares of Power3 Medical. One can imagine the extent of the possible dilution, as PWRM states it will have to increase the number of its authorized for issuance shares in order to comply with that requirement.
