MDCE fell back down by 21.05% in the last trading session and closed the market at $0.015 for a share. The apparent reason was the filed with the SEC annual report of the company, which stated that the development-stage company has still not made the expected progress to start its intended business. 291,000 shares were traded for the day and the share price dropped again below the 50- and the 200- day moving averages.
What could gain traders back today, however, is the new promotion for MDCE that started on Friday last week. According to our database, one promoter has received $7,500 for the distribution of advertising e-mails on Medical Care Technologies. And it is not like MDCE has never surged on a promotion. In the middle of February, some other trading alerts made it deliver triple digit gains in a day on record trading activity.
Other recent events around MDCE included the raising of some cash last month to support the company’s weak $391 cash position as of December 31, 2010. Medical Care Technologies received net proceeds of $30,000 from the sale of a convertible promissory note that was not issued at the best possible terms. Namely, it is convertible at any time after 180 days from March 11 and at the holder’s discretion into shares of MDCE common stock. Conversion price should equal to a 39.9% discount to an average of the market price of the stock during the 10 days prior to conversion.
According to the company’s annual report, its mission is to build and operate private children’s health clinics in China. In addition, MDCE plans to offer medical software information systems also in China. Unfortunately, at the end of last year the company’s balance sheet did not look like the $30,000 would be enough to fulfill its goals. In addition to the above mentioned cash, MDCE has only $6,500 in prepaid expenses and fixed assets with a carrying value of $10,000. Though the lack of long-term debt, MDCE has current liabilities for over $300,000.
