Yesterday, Genmed Holdings Corp. (OTC:GENM) made a 50% jump at market close, yet today’s session might be much more remarkable. A brand new $300,000 promotional campaign started last night and it will reach the market today. 
As if in anticipation of what may follow today, GENM share price jumped up in the last two hours of trading yesterday. The closing price was 50% higher at $0.078 for a share, though the trading volume was much less than the average with only around 141,400 traded shares. With MACD lines crossover and RSI pointing up, traders might consider the chart very positive for the coming trading day, but GENM will also rely on one of its previous promoters.
Last night, a promotional e-mail came into our data base covering again GENM and saying the pick is “going PSYCHO this week”. According to the e-mail, that would be attributed to the promotional coverage, not to any expected news from the company. The disclosure says the promoter received $50,000 from a third party for a three-day marketing program, and has agreed to get another $250,000 from the same third party for a one-month promotion. To justify that compensation, GENM will actually have to perform well, at least short-term.
Genmed Holdings latest news was its financial report for the second quarter. The company has yet not realized any sales of its generic drugs, although it registered its first generic product in seven EU countries on June 30, 2011. Thus, GENM keeps relying on outside financing to sustain its operations.
Respectively, what has changed in the balance sheet is the long-term debt position – from $1.18 million at the end of December 2010 to $2.44 million at the end of June 2011. The increase is due to the fact that GENM issued more bonds during the first two quarters of the year for a total amount of $1.32 million.
Later, an agreement was reached with the bondholders to include a conversion feature which now gives them the right to convert the bond, or a portion of it, into GENM common shares at prices between $0.15 and $0.50 per share. In total, the company’s bondholders may convert the bonds into 8.59 million new shares of common stock.
