Yesterday, nearly 60 million shares of INOL were traded, a volume impressive enough for the usually highly illiquid stock, making the shares almost completely oversold. Though, the closing price of $0.094 is still far away from the 52-week high at $0.22, implying that the company that has not commenced any operations yet may see their stock surge even higher.
No paid promotions have been reported for INOL recently, though a press release from yesterday was enough to cause the price and volume action, and to inspire investors to spread interesting rumors about InoLife and its future prospects.
According to the company’s official announcement, INOL will provide and market a proprietary metabolizing test for Plavix, an $8-billion and the world’s second best selling drug, which is however not effective until metabolized by a liver enzyme. INOL’s test shall be provided to physicians and shall identify how patients’ genetic makeup affects their response to Plavix.
INOL’s latest 10-Q, filed two weeks ago, does not mention the existence of any proprietary tests or other similar tangible or intangible assets of the company. Moreover, the company’s plans to enter the pharmacy industry date back to last September and are so far focused on the research and development of new treatments for cancer in companion animals. INOL has around $82,000 in cash as the only asset, $336,000 in current liabilities and is obviously in urgent need for additional capital.
The only source for which appears to be the stock market right now, since as already mentioned, no operations whatsoever have been started yet. Regardless of that, a forum user spread among investors some rumors about a possible buyout of INOL by Bristol Myers, the company that has developed and is marketing Plavix, and about INOL’s CEO holding 60 million of the company’s common shares, or around half of the outstanding shares.
The broad discussions were welcome, especially for shorters, who made up 31.75% of the trading volume yesterday.
