soared 33.33% on the market and yesterday the stock added the next 20% to its price. Along with the price move, EHSI traded volume also increased by approximately 712 thousand shares.The most reasonable explanation about the gain turns out to be the latest news by the company. On Nov 30, Emerging Health reported that its affiliate Celulas Genetica purchased a license for new organ regeneration treatment called Rutherford Procedure. On the next day, EHSI announced its acquisition of the biotechnology firm Celulas Genetica, connected with developing and marketing the Rutherford Procedure.
Having heard the good news, investors started to buy EHSI shares and the high trade began.[BANNER]
Emerging Healthcare Solutions, Inc. invests in and participates in the profits of emerging breakthrough medical technologies. Historically, the company used to trade much higher, however, since April the price has been falling down.
According to its quarterly report, Emerging Health has more assets than liabilities on its balance sheet, though the company’s accumulated deficit during its development stage totals over $3 million.
As EHSI has no significant revenues, it has funded its operations by obtaining loans and it has cumulative losses since the re-entry into the development stage. As of June 30, the company has negative working capital and negative cash flows from operations, which are “expected to continue over the near term”. Thus, EHSI relies on obtaining additional loans “in order to carry out its business plan over the next twelve months”. However, there’s no guarantee that the funds for the company’s operations will be ensured.
