Looks like these days the managers of National Health Partners, Inc. (OTC:NHPR) decided to apply the not always successful strategy explained by our grandmas like “One stroke, two birds”.
Unfortunately, as of yesterday the rolling down share price was rather an evidence that some stronger tactics should be applied in order to prevent NHPR’s price decline in a just started market, flooding with the company’s stock.
During the first week of this year, National Health Partners, Inc. announced the results of the vote on the capital increase of the company at the special meeting of shareholders on December 28, 2010. According to the document, 57.46% of the votes were in favor of the decision to increase two and a half times the authorized capital.
At the end of September, NHPR had authorized capital of 100 million shares. Now, the impressive number of 250 million common shares is supposed to be registered in the changed NHPR articles of incorporation.
And while last year National Health Partners, Inc. was granting its shares mainly to its managers in lieu of the payment of salary compensations, this year the above mentioned non-cash payment tool of NHPR may almost solve its liquidity problems. This well-known process of non-cash elimination of obligations already started.
Since last Friday, the “one stroke, two birds” strategy went into power. In order to increase investor awareness in the company’s already flooded stock, a stock promotional campaign got initiated.
Four stock promoters are involved to “meet” the new needs of the company of increased demand for its shares. And all this promo efforts NHPR will compensate, how clever, not with cash but with shares.
The budget of the stock promotion includes 3 million shares of restricted common stock from the company. Additionally anticipated are also extra 3 million free trading shares from a third party for six months of advertising services for National Health Partners Inc.[BANNER]
As opposed to the managers’ statement: “We believe that our current cash resources will not be sufficient to sustain our current operations for the next 12 months.”, the golden river of shares issued for services rendered may be efficient in sustaining some current operations of the company.
So, nothing strange that the one stroke of the company may return some benefits to holders of its shares. The first captured bird may be the improved shares’ performance these days due to the stock promotion, and the second one for sure will be the solving of a part of the company’s liquidity problems.
All mentioned benefits and shots, unluckily, usually have only short-term effects.
