Advanced Medical Isotope Corp. (OTCMKTS:ADMD) Is Still Unstable
Advanced Medical Isotope Corp. (OTCMKTS:ADMD) rallied 14% in yesterday’s session, but like the last time, it doesn’t look like it will maintain any semblance of stability for very long. And the reasons for that are quite simple.
The company seems to have attracted the attention of investors through media exposure. That’s objectively good, but unfortunately, that’s one of the very few things ADMD has going for it.
Pretty much everything else that crops up once you start looking into ADMD is off-putting.
Like the fact that at the end of 2015, ADMD had nearly 2 BILLION shares outstanding, with no more room for dilution – but still had plenty of toxic debt to its name. That’s not surprising, seeing as how the company is overfond of issuing notes that can be converted into shares of the company’s common stock at discounts ranging between 40% and 50%or at a fixed conversion price of $0.001.
What’s worse is the fact that this state of affairs doesn’t seem to bother ADMD in the slightest – it just shook thing up a bit and started issuing preferred A shares in exchange for capital.
According tot he company’s filings, each and every Series A share can be converted into 1000 common shares. Last time we checked, there were almost a million of those shares outstanding, and recently, ADMD upped their authorized cap to a whooping 5 MILLION.
Additionally ADMD‘s management are still authorized to perform a reverse split at a ratio between 1-for-100 and 1-for-300 at any point in time up until October 15, 2016.
With this in mind, it should not be all that difficult to see why the ticker would find it very difficult to retain even a semblance of stability – and we haven’t even scratched the surface here!
There’s also the company’s apparent idleness and indifference, its horrible financial state and dubious management decisions, as well as contradictory statements – the glowing red flags just keep on piling up once you do even a shred of basic due diligence on ADMD.
Investors would do well to take that into account and be doubly careful when dealing with the ticker.