Suddenly, Providential Holdings, Inc. (PINK:PHIE) grabbed the gain. Yesterday, the stock jumped approximately 121% on a 
traded volume of over 8 million shares. What has caused the massive trade is easy to guess – the latest news by Providential Holdings.
Yesterday, the company reported that its majority owned subsidiary Provimex, Inc. has acquired Humex Medical Group, Inc. to engage in stem cell research and therapies in Southeast Asia. The agreement between the companies states that Humex will exchange all its issued and outstanding shares for a 70% ownership in Provimex, whereas PHI Group and its shareholders will retain 30% in the combined company. Also, the new company will change its name to EHE Biocell Group as soon as PHIE and Humex complete their financial audits and file a registration statement with the SEC to become a fully reporting publicly traded company.
Obviously, the hot news encouraged investors and PHIE stock price jumped up immediately. However, it is interesting how long the climb will continue. In any case, this move gave a great advantage to Providential and now it’s rushing up at full speed.
PHI Group, Inc., or Providential Holdings, Inc., is a company focused on M&A consulting services, real estate development, natural resources, energy and special situations. In end-May, the company announced it has closed a coal asset purchase agreement with PT Dian Anugrah Pratama, though this news couldn’t push up PHIE stock price.
Regarding the quarterly report of PHI, the situation is quite disturbing:
* Total current assets: $210,540
* Total current liabilities: $9,005,412
* Total stockholders’ deficit: $7,327,421
* Cash and cash equivalents: $28,909[BANNER]
Considering the fact that the company has huge accumulated deficit and negative cash flow from operations, the continuation of Providential is placed under a going concern. The management hopes to strengthen the company’s working capital position and generate sufficient cash to meet its operating needs, however, none of these can be guaranteed at this point.
Currently, the operations of PHI are financed through various loans and sale of marketable securities. However, it is very interesting what cash resources the newly founded company will be using after it is registered.
