Suddenly, SOHM, Inc. (PINK:SHMN) got the climb. Yesterday, the stock soared 6.67%, while its traded volume substantially increased.
Following the records, SOHM has not released any news on its business for a month, though it was just yesterday when things changed at once.
A press release by the company reported that the Indian subsidiary of SOHM, Inc. has been recognized as one of the fastest growing pharmaceutical companies in India.
The news came up just in time to push up SHMN stock price, though there was another factor that influenced it.
Yesterday, SHMN got promoted by Hot Shot Stocks. The compensation for the campaign is currently unknown, however, it is clear that SOHM has initiated the promotion by itself, as no third party was involved in it.
SOHM, Inc. is a generic pharmaceutical manufacturer that produces and markets generic drugs covering all major treatment categories. SHMN is not a reporting company and, therefore, does not file annual or other reports with the SEC.
Nevertheless, the annual report of SOHM for the year ended December 31, 2011 was published on the OTC Markets website. Unfortunately, the report was not encouraging at all.[BANNER]
On the contrary. According to it, the current economic environment may pose a challenge for SOHN in raising funds for business. The company must continually have access to the capital markets to raise funds for operations. Lack of financing may hinder further growth and slow the implementation of the business plan.
Besides, SOHM registered negative cash flow from operations and incurred a net loss during the previous twenty-two months. Thus, its financial statements have been prepared assuming that the company will continue as a going concern.
Meaning that the only way for SHMN to continue operations is to achieve sufficient cash flow or secure adequate future financing.