Breathe eCig Corp. (OTCMKTS:BVAP) Slides Back Under a Dime

Following the volume and price action of late April, the stock of Breathe eCig Corp. (OTCMKTS:BVAP) took a breather for the better part of the current month. Yesterday’s session saw BVAP drop in double digits again, on a significant volume spike. After 1.7 million shares changed hands, the company stopped at $0.09 by the closing bell.

For those wondering why BVAP was very thinly traded in 2014 and early 2015, the answer would be – because it was not working on vape pens but was rather an unsuccessful mineral exploration venture back then. After a merger and a name switch, BVAP climbed in leaps and bounds over the second half of April, initially stirred into greater daily volumes by PR concerning a manufacturing agreement with a Hong Kong based company. A later release dropped a bit of info about a $300,000 order placed with the same manufacturer. The stock soared as new PR informed convertible debt to notoriously toxic financier JMJ Financial was retired using a cash payment instead of a ton of newly issued shares.

Things were looking good but despite new positive PR the stock turned a deep red on May 15, then went on quite a red streak over the following sessions. This culminated in yesterday’s 11.7% drop. Here is the brief summary of the quarterly balance sheet BVAP put up on May 15:

  • $134 thousand in cash
  • $773 thousand in current liabilities
  • ZERO revenues since inception
  • $1 million in quarterly net loss

The fact that BVAP has only recently turned to producing vaporizers, has not made a dime of revenues selling those vaporizers just yet and its biggest achievement so far seems to be dubbing itself “the first socially responsible company” in the vape sector could be a few things to keep in mind.

Another thing to note is that despite pointing out the retired JMJ debt, BVAP still managed to dilute its stock significantly within a very short amount of time. The latest 10-K by the company reported 276 million outstanding common shares as of April 6. By May 13, just over a month later, the count was up to 335 million outstanding shares. Back in November BVAP has a mere 100 million shares issued and outstanding.

Whether BVAP will retreat back to its early April levels or manage to stop this slide remains to be seen.

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