Like in the previous trading session, NWCI stock surged up once again yesterday. This time, NWCI even opened above Wednesday’s close and experienced much higher demand. Moreover, the market seemed more consolidated and the final result was 10.29% higher closing price for NWCI stock on over one million shares traded. 33.3% of that volume was shorted, but the shorting was stronger during the previous two sessions. On Tuesday it was 42.1% and reached 44.6% on Wednesday.
The latest news around Newcardio came out two weeks ago from an 8-k filing, according to which the company has received the final $500,000 advance and has now borrowed all of the $3 million available under its credit line agreement from last July.
This could hardly be considered good news, not only because NWCI already has two and a half times more liabilities than assets and no sufficient working capital. The credit line arrangement is also constantly driving the dilution risks for NWCI shareholders even higher. The company has taken the obligation to issue warrants each time a draw down under the credit line has been made.
During the first half of the year, 1.8 million warrants were issued and with the receipt of the final payment, another 500,001 warrants were granted to the lender. They had an exercise price of $0.85, or above yesterday’s closing price of $0.75. The total number of warrants outstanding at the end of June was 12.2 million and the company also has 7.7 million employee stock options.
Also during that period, NWCI reported its first $70,000 revenues and up to $275,000 more revenues will come in during the current quarter. The first revenues came from the sale of implementation kits and professional services related to the QTinno technology, a cardiac safety solution and MWCI’s initial product.
At the beginning of this month, the company entered into a Master Services Agreement for licensing the QTinno technology for use in connection with cardiac safety drug studies, where the additional revenues are expected to come from.
