and its traded volume rose over 2 million shares for the day.The most interesting fact here is that no particular reason for the up move can be found, except for the last news released by Imaging3 on Jan 4. According to it, on Oct 15, 2010, IMGG has closed the transactions contemplated by the Securities Purchase Agreement dated Oct 4. Pursuant to the agreement, an investor has invested $1,000,000.22 into the company at a price per share equal to $0.218. At the closing the company raised net proceeds of approximately $920,000. IMGG also issued a five year warrant to purchase up to 229,358 shares of its common stock on a cash or cashless basis for an exercise price of $0.31 per share.
On the day after this news was published, IMGG started to move up and the stock got overbought. Though, if it’s a new bullish trend is yet early to be defined.[BANNER]
Imaging3, Inc. is engaged in producing and selling of medical equipment, parts and services to hospitals, surgery centers, research labs, physician offices and veterinarians. Along with the present up move, an open discussion appeared on the investorshub.com message board. Traders assumed it could be an eventual FDA approval for IMGG’s medical device that has pushed up the stock price, however, after FDA rejected the company’s device once no news for recent approval was found in IMGG’s reports.
As already reported on hotstocked.com, by end-September Imaging3 has increased its revenue, however, its liabilities got approximately 8 times higher than the total assets. According to its 10-Q report, the company has an accumulated deficit of over $13 million, as well as a significant net loss and huge expenses. Above all, cash and cash equivalents of IMGG total only $8 thousand, which is far less than the amount of money the company needs to cover its losses. And while Imaging3 relies on the Purchase Agreement to fund its projects, the management team expects the losses to continue.
