Is Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) Putting The Cart Before The Horse?
Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) just announced that it has entered into a manufacturing agreement, for FlutiCare™ 60 and 120 spray/bottles. Yes, that’s right – the company just boasted that it has signed an agreement for the packaging of a product that is not even FDA approved yet – and the market is already going crazy about that.
Evidently, the announcement has been taken as a sign of INNV‘s supreme confidence in its product, but as we all know, boisterous bravado is far from uncommon on the OTC Markets – and it doesn’t necessarily indicate that the future has good things in store for the company and its investors.
The FDA’s decision on the matter is, as INNV mentioned, “expected between July-September” of 2016. Everything the company does before that point in time may well be considered preparing for an uncertain event at best and wishful thinking at worst.
Meanwhile, the company’s financial reports still look horrible, with numbers such as:
- cash – $32 thousand
- total current assets – $378 thousand
- total current liabilities – $3.56 million
- Q1 2016 net revenues – $224 thousand
- Q1 2016 net loss – $1.55 million
So, even though INNV may be making a lot of noise lately, investors would do well to keep their cool, because the company’s actual financial situation looks quite grim.
And, unfortunately, poor financials are not INNV‘s only shortcoming. Currently, the company has $1.32 million worth of convertible notes issued and outstanding, all of which can be transformed into INNV common stock at a price of $0.15 per share. That was below the market price, even after all the dramatic drops that the ticker has suffered in these last few sessions, and in light of today’s rabid climb, well… You get the picture.
Investors would do well to note all of these details, take them into account and act accordingly.