Fuse Science, Inc. (OTCMKTS:DROP) Slumps 15% on Frenzied Volume
After wading through relatively calmer waters for about two months, yesterday Fuse Science, Inc. (OTCMKTS:DROP) dropped 15%. The crash happened on share volume greater than the cumulative volume from the last two weeks of trading.
After eight slower sessions with under 1 million shares traded, DROP shifted 10 million shares of its stock yesterday. Sadly, the volume action brought the price down in its biggest percentile drop in recent months. The company is a relatively small sports and energy drink enterprise, allegedly expanding its research into medicine delivery systems including sublingual and roll-on delivery of medication that previously required different approaches. The company gained a lot of attention by signing an endorsement deal with golf superstar Tiger Woods, compensating him with shares instead of cash sums it didn’t have on hand.
The heavy volume day came in the wake of an 8-K filing from DROP that announced there was an initial shipment of Fuse products to several thousand Wallgreens stores made earlier this month. The company appears to be trying to shelve its product and projected that sales numbers for the quarter ending June 30 will will probably be more than double the sales figure for DROP‘s entire fiscal 2012 ended September last year.
This filing was accompanied by a press release outlining the progress the company is reportedly making in its alternative drug delivery systems, especially hormonal treatments. None of those optimistic but forward-looking pieces of information seemed to thrill investors much, as the heavy volume brought the price down. Investors were probably more interested in the fact that DROP lowered the exercise price of its Series B warrants for the purchase of common stock from $0.076 down to $0.055. The Series B warrants were originally issued on March 7 this year and covered purchasing a little over 12 million DROP common shares.
Assuming DROP does indeed deliver 200% of its 2012 sales in the current quarter, this won’t help the company’s financial situation much. Revenue for 2012 amounted to $105 thousand, which would translate into about $210 thousand projected quarterly revenue. DROP recorded $2 million in expenses for the quarter ended March 2013, so even if they exceed the projected 200% increase, they would most likely still record sizable quarterly net loss.
Other stocks that dropped in double digits yesterday included Creative Edge Nutrition, Inc. (OTCMKTS:FITX) who slumped 43% to a close of $0.002. iTalk Inc. (OTCBB:TALK) fell 11% on Thursday and ended the session at $0.55 per share.
