There is no logical reason for Vantage Health (OTC:VNTH) to be moving up right now, but as it happens on the OTC, some stocks do that.
Last Friday, VNTH closed up another 7.14% up, following a 40% surge on Thursday. The volume was nowhere near the 1 million shares from Thursday, but at any rate any move up doesn’t make sense for VNTH at the moment.
The company hasn’t generated any revenue, which is not really unexpected for a development-stage company. The problem is, VNTH doesn’t have anything going its way.[BANNER]
VNTH had entered into an exclusive agreement with Shanghai Kehua Bioengineering Co Ltd for the exclusive rights over 12 months to sell a Diagnostic Kit for HIV (1+2) Antibody Colloidal Gold) in the continent of Africa. VNTH paid $50 thousand for the agreement, only to have it terminated 6 months early on June 30, 2011 because VNTH failed to meet the condition to place an order for $500 thousand worth of test kits within 6 months of the agreement.
In early August, VNTH announced its subsidiary was finalizing a pricing structure for a supply agreement with an unnamed retail group. However, “…the contract is expected to run from January 2013…”, and revenues from the contract will only be generated once MCC approves each drug dossier, so at this time it remains only an uncertain possibility.
In the meantime, the company is in need of funding, and the way to get it would be to issue more stock or debt. Either way, shareholders will not gain anything from it.
