Will Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) Move On Now?

Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) took a nasty beating yesterday, losing 28.03% of its market cap in just a couple of hours of trading, but it seems that it is now on its way to recovery.

Truth be told, the market’s behavior yesterday seems a bit peculiar. The only thing that hit the web back then was the announcement of SeeThruEquity, that according to it, INNV’s Price Target is $0.91.

To look at it from another angle – SeeThruEquity announced that $62 MILLION would be a reasonable market cap for INNV.

Mind you, we’re still talking about a company that released the following numbers a couple of days ago:

  • 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 what information can we glean from this whole situation? Well, it might just be that once the ticker had reached a certain high and started falling, SeeThruEquity’s laughable touting attempts were powerless to stop it.

Then again, it would be understandable why a piece of half-hearted praise failed to halt the ticker’s descent, if said sudden was a result of the toxic debt that INNV took on in Q3 2015. Back then, the company’s management though it was a good idea to issue $1.32 million worth of convertible notes that can be transformed into INNV stock at a price of $0.15 per share.

INNV seems to be doing better in today’s trading session, after reminding investors that it has bought “Beyond Human for a cash purchase price of $630 thousand”. How long will that last?

Well, if the hype catches on again, the ticker may well end up above the half dollar threshold before the week is out. That is, provided that the holders of the debt that we mentioned remain idle. If said noteholders decide to cash in on the action, the road before INNV will be a bumpy one indeed.

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