Shares of BioHeart, Inc. (OTC:BHRT) surged nearly 27% on Monday after the biological developer of cell treatment therapies gained the exclusive rights to use Ageless Regenerative Institute’s adipose therapeutic cell technology for cardiac purposes worldwide, according to a company press release.
Yesterday, BHRT advanced $0.012, or 26.67%, to $0.057, its highest close since Dec. 14. Shifting in excess of 5.47 million shares, BHRT scored its highest volume since Jul. 21. Thus, BHRT fared particularly well relying on no paid advertising games whatsoever. For the record, BHRT was last promoted on Nov. 15 when promoter Bullish Stock Picks got paid $20 thousand to raise awareness about BHRT.
Established in 1999, BioHeart is mainly focused on discovering, developing and commercializing novel cell therapies aimed at treating chronic and acute heart damage, as well as peripheral cardiovascular diseases both nationwide and worldwide. Its flagship product is MyoCell – a cell therapy designed to improve cardiac function in patients suffering from chronic heart failure.
Last week, BHRT filed an S-1 registration statement regarding the public offering of up to 25 million shares of common BHRT stock owned by a stockholder. While the stock’s par value is $0.001 per share, its current market value is considerably higher (as seen above). Whether BHRT’s market value matches its intrinsic one is evident from the company’s 10-Q report for the third calendar quarter of 2011. As of Sept. 30, BHRT has:
- $2,787 in cash;
- negative working capital of $12.4 million, i.e a current ratio of 0.013;
- quarterly revenue of $3,495 vs. net loss of $1.58 million.
In the light of the huge working capital gap and the considerably high net loss mentioned above, BHRT seems by no means underrated for the time being. Moreover, it will take quite a while before the company goes in the black unless its makes a market breakthrough with its novel cell therapy.
