Proteonomix, Inc. (OTC:PROT) had one of its most intensive trading sessions yesterday which, however, did not result in an increase in the value of the stock. The reason for the volume was a new promotion for PROT, but the poor financial condition of the company prevented a share price reaction. 
The last session closed again at $0.41, although the trading volume exceeded 262,200 traded shares and was thus the second highest for the past six months. Share price increased only slightly during the session, but as of yesterday PROT has lost half of its value since the promotional alerts from the middle of November.
On Wednesday evening, again several e-mails came in our database, sent from several different websites. The identical compensation of $9,000 that they disclose suggest the campaign is organized by and paid by one and the same third party. PROT showed, however, that promotions alone are not enough to keep the share price up as the only result from that new promotion was the huge trading volume yesterday.
Unfortunately, press releases also do not seem to work for PROT recently. In the middle of the month, the company announced the signing of an agreement with the University of Miami to cooperate on an FDA Clinical Study on patients with End Stage Liver Disease (“ESLD”). The study will test PROT proprietary UMK-121 Biopharmaceutical Stem Cell Technology which is based on existing FDA approved drugs, whereby the company has to contribute $105,000 and the University has to bear all the other costs of the study.
A first problem associated with that new partnership becomes evident already with a first glance at PROT latest balance sheet. There, it is seen that as of end-September 2011 the company had only $5 in cash and equivalents, $19,000 in accounts receivables, and $153,000 in inventory. Obviously, PROT by far has not enough liquid assets to meet its obligation.
At the same time, it has nearly $7 million in current liabilities, more than half of which due under notes payable, convertible notes and an obligation to issue common stock. Those debts only add to the dilution risks coming from PROT missing but urgently needed funds.
