Every investor is aware that stocks traded on the OTC are volatile and not a certain investment by any means. Why do then people trade them? MultiCell Technologies, Inc. (OTC:MCET) demonstrated one of the reasons yesterday.
Before the markets opened, MCET issued a press release which sent the price sky-high. With heavy trading through the whole session MCET closed 356% up at $0.021 per share. The volume was also astounding – 530 million shares.
The announcement was about a patent. The United States Patent and Trademark Office issued U.S. patent 7,935,528. It makes MCET the worldwide exclusive licensee. The patent pertains to the isolation and use of human liver stem cells to treat liver disease.[BANNER]
The latest available 10-Q is for the quarter ending Feb. 28. It shows the company had some liquidity problems. As of that date there were approximately 606 million shares issued and outstanding, which means yesterday nearly 90% of the OS was traded.
Unless, of course, the OS has increased since Feb. 28. The report revealed that, at the time, there were stock options worth $10.4 million with weighted average exercise price of $0.02, very near yesterday’s close.
Some traders think the run will continue for a day or more, but that is not certain as the patent doesn’t automatically make MCET a profitable enterprise. The long-term implications remain to be seen. Congratulations to those who managed to get in on time.
