Aethlon Medical, Inc. (OTCMKTS:AEMD) is seeing red after the Company released an 8k on Tuesday announcing a 1-for-50 reverse stock split. Management wants to seek listing on a higher exchange where they can attract institutional investors.
Thus far the market does not like this news at all, we will see if this changes; everyone seems to think that RS is bad and usually results in lower PPS as the result of panic selling etc., but if we really examine the issue we come to an entirely different conclusion. Yes in almost all cases when a non-revenue, sub penny co with a history of dilution does another RS it almost always ends in more downside. And this is the only logical outcome; if management is doing a RS so they can continue to further dilute shareholders why would any shareholder not sell.
At the other end of the spectrum when an established Company such as AEMD with real products does a RS so they can up list and expose their Company to a higher bread of investor it almost always results in significant moves to the upside; let’s look at some recent established Company RS examples; CTSO did a 25 for 1 RS on December 1, 2014 the stock opened after the RS at just over $4 a share and quickly ran to over $12 in 3 weeks.
Another established Company RS recently was SIAF which did a 9.9 for 1 RS on December 16, 2014 the stock opened after the RS at just over $6 a share and was trading over $9 by the next day. Even if we look back farther and take MSLP which did a 850 for 1 RS on November 26, 2012 opened after the RS at just over $4 and was trading over $12 a share within 6 months.
So I reject the general consensus that is going around that RS will result in a dropping PPS; on the contrary RS could be the catalyst that takes this one to the next level.
Aethlon Medical, Inc. (OTCMKTS:AEMD) is a Medical Device Company focused on creating innovative devices that address unmet medical needs in cancer, infectious disease and other life-threatening conditions.
To Get the Inside Scoop on Aethlon, Subscribe via email Right Now.
The Aethlon Adaptive Dialysis-Like Affinity Platform Technology System (ADAPT™) is a medical device platform that converges single or multiple affinity drug agents with advanced plasma membrane technology to create therapeutic filtration devices that selectively remove harmful particles from the entire circulatory system without loss of essential blood components.
Recently AEMD successfully used their bio-filtration device, the Aethlon Hemopurifier® to treat a critically-ill Ebola-infected patient in Frankfurt, Germany. The patient was a Ugandan Doctor, who was infected with Ebola in Sierra Leone where he was treating Ebola patients. At the time of treatment, which occurred at Frankfurt University Hospital, the patient was unconscious and suffering from multiple organ failure.
Recent date suggests a million Ebola viruses were captured within the Aethlon Hemopurifier® during treatment, a number verified by a post-treatment elution protocol. The patient is no longer infected with Ebola virus and is expected to make a full recovery.
The Hemopurifier® is a first-in-class bio-filtration device designed for the single-use removal of viruses and shed glycoproteins from the circulatory system of infected individuals. The device targets antiviral drug resistance and serves as a first-line countermeasure against Ebola and other viruses that are not addressed with proven drug therapies.
We have a Monster Pick Coming. Subscribe Right Now!
Currently trading at an $82 million market valuation AEMD does have $2.7 million in the treasury, manageable debt and small revenues. AEMD is an exciting opportunity developing in small caps; the Company recently successfully treated a critically-ill Ebola-infected patient with the Aethlon Hemopurifier® and This was followed by the FDA approving a clinical protocol to treat Ebola-infected individuals in the U.S. with the Aethlon Hemopurifier®. We will be updating on AEMD on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with AEMD.
Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!
Disclosure: we hold no position in AEMD either long or short and we have not been compensated for this article.