Endonovo Therapeutics Inc (OTCMKTS:ENDV) Is Still a Mystery

Endonovo Therapeutics Inc (OTCMKTS:ENDV) has had quite a week so far. A huge 336% jump on Monday was followed by another 66% push on Tuesday and a record breaking daily volume of over1.1 million shares. After those incredibly exciting two sessions, the ticker was sitting at $0.80 which is a whopping 627% above the value at the end of last week. Yesterday, it slipped by about 18% and it stopped at $0.65, but most people seem to hold the opinion that this is only normal considering the massive surge experienced prior to that.

These sort of runs are not that uncommon in the strange and fascinating world of the OTC Markets, but more often then not, there’s a reason for them. In ENDV‘s case, however, the catalyst is nowhere to be found.

The stock hasn’t been promoted since October and the latest press release issued by ENDV is just as old. Some news outlets have covered the incredible jump saying that ENDV could be a “holiday treat”, but even they aren’t able to pinpoint a reason for the huge price appreciation. This turns the stock into a bit of a mystery and it also makes it a huge gamble.

People around the social media say that “the bulls have arrived” but that’s hardly a reason to put your money on the line and, as we mentioned already, there’s nothing else immediately obvious that could entice you to invest.

The stock could be quite unpredictable in the coming days and in light of the information in the latest 10-Q, the longer-term performance might turn out to be very bumpy as well. For one, the financial statement is not what you’d call confidence-inspiring. It shows that at the end of Q3 the company had:

• less than $28 thousand in cash
• current assets of about $30 thousand
• current liabilities of around $5.8 million
• negative quarterly revenues of $400 “as a result of returns”
• a quarterly net loss of $1.3 million

At first glance, things are not looking very good, and a more detailed look does nothing to improve the situation. The information on the dilution that has occurred is particularly worrying.

During the first nine months of the year, ENDV issued a grand total of 13.1 million shares at an average rate of $0.032 apiece in order to satisfy about $428 thousand worth of debt. At the end of September, there was a further $346 thousand worth of debentures still outstanding, and the management team were kind enough to tell us that this amount is convertible into common stock at discounts ranging from 40% to 53% to the market price.

A large amount of cheap shares hitting the open market could spell disaster for ENDV, especially considering the fact that, with no obvious reason for the current share price, the stock seems to be in uncharted waters. Proceeding with caution is absolutely essential.

About fifteen minutes into today’s session, ENDV is traded at $0.59 per share (9% in the red).