Yesterday, Allezoe Medical Holdings, Inc. (OTC:ALZM) broke out of its recent trading range. There has been no news recently to initiate such a jump, but this is not a surprise in the case of ALZM which seems to be making periodically such one-day jumps on no news.
The session closed at $0.715 for a share on a trading volume of 117,888 traded shares for the day. That closing price represents a 22.85% increase from Thursday close. Most of the action happened shortly before market close ALZM, but given that there is no news or promotions behind the jump ALZM might be too risky today.
At the beginning of the month, the company filed an 8-K related to an Investment Agreement entered into on August 31, 2011. Under the agreement ALZM may sell newly issued shares of its common stock to the investor and raise a total amount of up to $30 million during the commitment period. As part of the agreement, ALZM has already issued 391,304 shares recently. The company has also agreed to register with the SEC all shares issued under the Investment Agreement.
ALZM did not react to that material event filed by the company, neither did it to the latest 10-Q that came up in the middle of July. The quarter report shows the company still has no revenue and the largest part of its total assets of $455,723 is still intangible – namely patents with a book value of $351,614.
On the other hand, ALZM reports over $3.2 million in current liabilities, $2 million of which due under notes payable. From the 10-Q it is also evident that the largest part of the company’s debt is convertible into shares of common stock at a discount from the average market price.
