Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) Goes Down in Flames
All the hopeful investors that put their money in Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) saw them vanish right before their eyes. In just one horrendous session the ticker wiped out all the value added on the previous day and then some. EAPH bombed by more than 32% and barely managed to stop its slide at $0.011. The 7 million traded shares were still significant for the company that a week ago had a day when only 3000 shares changed hands.
With the recent pump by Exclusive Stock Pick having little to no effect, EAPH decided to take matters into their own hands. In a press release they announced their intention to join the by now waning medical marijuana sector. This comes as quite the surprise because most of the pennystock companies that joined in did it while the hype was still massive and expectations were running rampant. But still investors flocked to EAPH‘s stock and the company posted two subsequent closes in the green, one on a record traded volume of 27 million.
Well, the upward movement proved to be short-lived and this, is no surprise at all. A major factor for the crash must have been the freshly posted quarterly report for the period ending March 31. We can’t believe that there is an investor capable of staying optimistic after seeing these results:
- No cash
- $137 thousand total current assets
- $474 thousand total current liabilities
- No revenues since inception
- $22 thousand net loss for the period
Things are even grimmer than the numbers show. The company has been trying to develop trans dermal treatments for male and female sexual dysfunction since December, 1997 and still has no product ready commercialization. Their main product – the Viorra gel, was supposed to be on the shelves by June but apparently that will not be the case.
Just 10 hours ago came another announcement from EAPH. They have began reformulating parts of the product line starting with Viorra and its transdermal delivery system. Not only that but another 3 products will be added – wound healing product, a topically applied pain gel and one against motion sickness. For more than 15 years they were unable to complete even one product so no projections how long the three new ones would take can be made.EAPH will try to stop the bleeding of their price per share by posting news and details regularly at least for the time being. Anyone contemplating investing in them should necessarily do their due diligence beforehand and decide if the risks aren’t a bit too much.
