Enterologics Inc (OTC:ELGO) started trading actively about a month ago. The company’s purpose is to make probiotics available as therapeutic alternatives for gastrointestinal diseases. Today could be interesting.
Yesterday ELGO closed 34.62% up at $0.35 on approximately 13 thousand shares.
Today has the potential to be an active day because of a promotion. On top of the additional exposure, which every promotion provides, the compensation for this one could attract some speculative traders.
Someone paid $100 thousand in cash for the services of the promoter and while it’s not the biggest amount paid for a promotion, it is impressive.
Additionally, the previous two times ELGO was promoted it worked out well, even though the promotions were cheaper.[BANNER]
Both times the promotions were accompanied by press releases from the company. There is no announcement so far today, but there is still time until the market opens.
The 10-Q for the quarter ended on Mar. 31 is pretty much what one would expect from an emerging development stage company:
- $124 thousand cash
- $126 thousand total current assets
- $48 thousand total liabilities
- no revenue and $37 thousand net loss
The company’s plan is to license or acquire probiotic strains and develop them to meet FDA approval standards. While ELGO has some working capital, if it isn’t enough the company will have to seek additional financing.
Whether it goes with equity or debt financing, is not clear yet. It is, as always, up to traders to decide how the pros stack against the cons, and how to play this one.
