With two additionally issued press releases and several more trading alerts, GENM share price has been going down the whole week. Only the trading volume, being still smaller than the incredible for the stock turnover realized at the start of the promotions about two week ago, gives reason to hope that GENM might be just experiencing minor correction and could be left up around the 46 cents level.
On Friday, GENM closed the market at 0.46 with a 6.12% decline in its share price from the previous session. Trading volume was slightly above 67,700 shares, and slightly above the average. A couple of days after the company announced that its new Irish distribution partner will extend the coverage to Scotland and Northern England, and will even finance the advertising budget, the interest of traders has started to fade away as suddenly as it came.
Genmed Holdings intends to manufacture and distribute generic medicines in Europe, but has so far only certain medical registration rights and not enough cash for commercial production and distribution. Another painful issue, that has not yet been addressed in any of the press releases, is how the company plans to fill the working capital gap of almost $1.4 million as of end-September 2010. And the issue is painful not only for the management of GENM.
Last March, the solution of the same problem with certain unpaid and outstanding notes resulted in 30 million newly issued shares of GENM common stock. Currently, according to the latest 10-Q report the company owed as of end-September 2010 more than $960,000 under a new convertible note. The conversion price is fixed at $0.04 for a share, or potentially another 24 million new shares.
