Emerging Healthcare Solutions, Inc. (PINK:EHSI) started to slip down since Wednesday's session. On Friday, its stock went down by 12%, while trading volume exceeded its average value times fold and reached 1.6 million shares. At the same time shorted volume reached almost 40% of the number of traded shares. Eventually, EHSI stock closed the day at $0.3498 per share.
Other than a stock alert on Dec. 31 there was no promotion detected to have had its share in the rise of EHSI stock price in the first two days of the year. Then EHSI shares appreciated by 16% and 14% respectively.
More likely it is the recent news sequence about EHSI that lies in the roots of the current chart patterns. For example, the rise of the stock in the beginning of the month was probably spurred by the announcement that EHSI had acquired a license to use the NASA intrifuge rotary cell culture system in China.
Later, on Wednesday this month, EHSI said it was seeking to hire a law firm in China as an overture to establishing an office in China and testing the revolutionary new stem cell treatment. However, it was that day that the stock started to loose ground and depreciated on a rising volume.
Emerging Healthcare Solutions, Inc. is a company that seeks to acquire life science technologies and bring them to emerging companies.
According to the unofficial financial records, EHSI has a working capital deficit of $400 thousand, which may hint at some short term solvency issues. In addition, the company has managed to generate $8 thousand revenues but the sum is too negligible to cover its expenses. Therefore, the end of the quarter is adorned by a net loss of almost $300 thousand.
Furthermore, EHSI has 200 million authorized shares, of which the company has issued around 36 million. Apparently in order to continue to operate the company will have to either issue new shares or get even more deeper in debt. And hardly will any of this scenarios be to shareholder's liking.