These days, Revolutions Medical Corp. (OTC:RMCP) stock delivered a brilliant performance, which was in unison with the improved performance of the company’s RevVac safety syringe. The main reason was not the product it self though.
In the middle of the moth, two important factors determined the rush for the shares of RMCP, a company that has been in the development stage since the last century. Unlike the expected volume increase, the constant pull up of RMCP stock price was probably not expected to be of such a scale.
The first and the most important factor for RMCP stock stir was the published prospectus and the following resale of the company’s common stock. The resale is for up to 9,180,000 shares, to be sold by certain security holders.
This amount is equal to one quarter of all outstanding shares of RMCP’s common stock, a fact that must have predicted the increase in RMCP trading volume.
More than four million shares in the above mentioned prospectus are related to Auctus Private Equity Fund, LLC, (“Auctus”), which belongs to the group of the selling stockholders.
This April, RMCP entered into a Drawdown Equity Financing Agreement with Auctus. According to it, for each purchased share of RMCP’s common stock Auctus will pay ninety-seven percent of the lowest closing bid during the five trading day period commencing on the date, on which a put notice is delivered to Auctus.
Along with filing the prospectus with the SEC, the company also announced its financial results for the period ended this June. On that day, RMCP stock closed the trading session with no change, maybe in expectation of the forthcoming rush.
From its inception in 1996 by the end of this June, being still in the development stage, RMCP has accumulated a deficit of more than $23 million. Further facts attracting investor attention are that for the same period the company has spent approximately $5.7 million for research and development and almost three times more money was spent for general and administrative expenses. Also, the company’s liabilities are exceeding by more than three times the company’s assets.[BANNER]
All these facts were supposed to result in increased shares supply, increased disappointment among investors and adequate rolling down of RMCP share price.
Fortunately, this has not happened yet. For the following half a month later, RMCP shares moved strongly downward only once. For the last two sessions, the intervention of shorters was one of the reasons for RMCP stir. One trading session before the yesterday’s 29.61% soaring of RMCP, the shorting volume was 51.4% of the total volume traded. Yesterday, even the stock alerts supported the huge demand for RMCP shares.
