Neuro-Biotech Corp. (PINK:MRES) stock chart illustrates perfectly the typical performance of promoted stocks, but yesterday’s jump of the share price was an exception. Officially, it was not caused by a promotion, but by the company’s answer to some “frequently asked questions”.6MRES.png

MRES formed a gap on its chart as the company provided crucial information about its business in a press release early in the morning. It looks strange that such “frequently asked questions” like:

  • Does MRES have any products?
  • Where does MRES take the money from to finance its activities?
  • Can a biotechnology company work without a single employee?
  • How will MRES address its long-term zero cash position?

could not find an answer in Neuro-Biotech diligently filed with the SEC financial reports. But the answers given yesterday to some traders’ curiosity obviously made sense. The following hectic reaction made MRES share price report a 18.52% gain and a trading volume of more than 7 million shares at the end of the day.

According to the press release, Neuro-Biotech has 16 products ready for production, one of which described as “the only blood test on the planet which can successfully measure on a scale, recognized by the World Health Organization […] the mental state of a patient”.

Proceeding with the FAQs list, the entire operations are being financed by two hedge funds and the company is hiring employees only on a contractual basis. As for Neuro-Biotech zero cash position at the end of the last three quarters and at the end of the last three years, management’s plan is also Neuro-Biotech.jpgvery promising.

Neuro-Biotech plans to raise $2 million in a private placement, and to repay fully all of its debt by the end of this year. That last two initiatives mentioned in one sentence do not exactly guarantee the bright future of the company, since the debt addressed amounts for almost $1.2 million.