Just like predicted in our earlier reports, Healthmed Services Ltd. (PINK:HEME) continues to roll down on a heavy volume as the effect of the promotions is slowly fading off.The price is losing ground because the company has no real value – no operations, no revenues and no assets. Their business model suggests the money should be made from selling medical software. The recent news stated that a collaboration agreement with Veritas Software System was signed in pursuit of this goal. The company also launched the HealtTrac application, which was however presented as freeware and holds thus little potential to generate any revenues.[BANNER]
The key reason for the stock price run up were the costly promotions, some of which had a budget of $100 thousand. The company officially had nothing to do with them as all the payments were made by third parties. That is however the casual way for the actual promoters to remain anonymous.
The market cap currently remains over $7.6 million, while the business holds over $300 thousand in stockholders’ deficit. The latest agreement with Team TFZR, documented in an 8-k filling, was actually an oral agreement, possibly because the company didn’t have the capital to carry out the would-be-obligations anyway and just needed to show the business is getting somewhere.
