This is a couple reasons why the price is dropping (excerpts from s-1 shown below)
NOTE: I AM LONG PPCH ,SO TAKE THIS ANY WAY YOU WANT. I JUST WANT PEOPLE THAT MAY BE NEW TO STOCKS TO UNDERSTAND WHAT IS GOING ON AND WHY READING THE FINANCIAL NEWS IS IMPORTANT AND ACCEPT THE RISKS THAT COME WITH THE OTC.
List shown below why this is tanking (not everything is here, but wanted to give multiple MAJOR factors. This took less than 5 min of research and is included in the "news".
I will not pretend I am a financial expert with explanations for each thing on the list, as they are excerpts pulled from the long s-1 they probably were hoping no one read.
Hope this helps!
Securities Registration Statement (s-1)
Date : 11/23/2015 @ 12:05PM
Source : Edgar (US Regulatory)
Stock : Propanc Health Group Corp. (QB) (PPCH)
Securities Offered (1) 98,404,985 shares of Common Stock consisting of: (1) 72,214,509 shares of Common Stock underlying the Convertible Notes; and (2) 26,190,476 shares of Common Stock issuable upon exercise of the Warrants.
Common Stock Outstanding Before the Offering (2): 397,082,216
Common Stock Outstanding After the Offering (2): 495,487,201
Quotation of Common Stock Our common stock is listed for quotation on the OTCQB market under the symbol “PPCH”
Terms of the Offering:
The selling shareholders will determine when and how they will sell the Common Stock offered in this prospectus.
Termination of the Offering: The offering will conclude upon the earliest of: (i) such time as all of the Common Stock has been sold pursuant to the registration statement of which this prospectus forms a part (the “Registration Statement”); or (ii) such time as all of the Common Stock becomes eligible for resale without volume limitations pursuant to Rule 144 under the Securities Act, or any other rule of similar effect.
Use of proceeds: We are not selling any shares of the Common Stock covered by this prospectus. As such, we will not receive any of the offering proceeds from the registration of the shares of Common Stock covered by this prospectus. We could, however, receive up to $15,714,285.60 in the event the Warrants are exercised for cash (notwithstanding that such warrants have a cashless exercise feature). We will use the proceeds from the exercise of such warrants for general corporate purposes, which may include, among other things, our working capital needs and other general corporate purposes.
Securities Registration Statement (s-1)
Date : 11/23/2015 @ 12:05PM
Source : Edgar (US Regulatory)
Stock : Propanc Health Group Corp. (QB) (PPCH)
RISK FACTORS
Investing in our common stock involves a high degree of risk. You should carefully consider the risks described below together with the information contained in this prospectus, including our financial statements and the related notes appearing at the end of this prospectus. If any of the following occur, our business, financial condition, results of operations and future growth prospects could be materially adversely affected. In these circumstances, the price of our common stock could decline, and you may lose all of your investment.
RISKS RELATED TO OUR FINANCIAL CONDITION AND OUR NEED FOR ADDITIONAL CAPITAL
Our independent registered accounting firm has expressed concerns about our ability to continue as a going concern. Our ability to continue as a going concern is in substantial doubt absent obtaining adequate new debt or equity financings.
The report of our independent registered accounting firm expresses concern about our ability to continue as a going concern based on the
absence of significant revenues,
recurring losses from operations and our need for additional financing to fund all of our operations.
Working capital limitations continue to impinge on our day-to-day operations, thus contributing to continued operating losses.
For the year ended June 30, 2015 and 2014, we have sustained net losses of $3,412,754 and $829,564, respectively.
Further, as of June 30, 2015, we had only $107,627 in cash,
$0 in receivable accounts and had an accumulated deficit of $20,965,671.
We can provide no assurance that we will be able to generate a sufficient amount of revenue, if any, from our business in order to achieve profitability. It is not possible at this time for us to predict with assurance the potential success of our business. The revenue and income potential of our proposed business and operations are unknown. If we cannot continue as a viable entity, we may be unable to continue our operations and you may lose some or all of your investment in our common stock.
