MediSwipe, Inc. (OTCMKTS:MWIP) On The Rise Again
The stock of MediSwipe, Inc. (OTCMKTS:MWIP) managed to stabilize itself after the crash that followed the massive upward run in the beginning and even began to regain some of the value it had lost.
The most probable reason for the rise yesterday are the optimistic news. Just 30 minutes before market open, the company announced that they have agreed to the terms for a capital investment from a Chicago based private equity firm in order to receive $1.1 million over the course of the next six months.
This was crucial for the development of the company as their latest balance sheet looked something like this.
- cash: $153 thousand
- total assets: $242 thousand
- total current liabilities: $598 thousand
- revenues: $14.9 thousand
- net loss: $182 thousand
The news were welcomed by investors even though there was a reason for some doubts, because B. Michael Friedman, the company CEO said that this will not cause immediate dilution, which left room for thoughts on the fact how large can the long-term dilution get.
Nonetheless, MWIP gained a nice 22.52% in value on more than double their average volume. In the end of the session there were more that 5.2 million shares that had switched hands, which generated a hefty $2.2 million in dollar volume.
Will MWIP manage to regain the price of the peak on news alone, however? We are quite sure that some good news might return MWIP to its peak of around $0.56 per share from the beginning of the year, but a nice quarterly statement might do even better.
At least we got informed that the company has managed to pay off around $500 thousand of their debt from last year, which should almost clear the liabilities listed in their Q3 report, which is always good news.
In any case, be sure to do your due diligence and weigh out the risks, because the medical marijuana sector still remains a risky investment choice.
Growlife, Inc. (OTCBB:PHOT) also had a good 4 day green run and closed yesterday’s session with another 10% gain. Cannabis Science, Inc. (OTCMKTS:CBIS) is regaining its upward course and has already surpassed its price from the huge hype in the beginning of the year with a 33% jump in price yesterday.