The price was never $40. Here is a breif history of the company as well as a fair assessment of where it stands now:
The company tried to get Myocell through the FDA right away and ended up spending $100 mill that they didn't have. As most upstart biotechs do, they tried to pay for this through dilution of shares. Eventually, to pay for the trials, they did a RS and continued to dilute. What you see is the price adjusted for the RS.
Back in the beginning of this year, the company was on the verge of bankruptcy. They were in court with the largest creditor when it was revealed that they had a couple of buyout offers. The largest creditor refused to work out a deal that would have paid them back with interest after finding out what the offers entailed. Instead, they met privately and worked out a new plan.
The creditor (Northstar) agreed to help USRM get on it's feet - likely for the purpose of merging or being acuired by a large company for substantially more than the first offers. Northstar has made incredible strides by repairing the balance sheet, eliminated toxic debt, connected them with a large investor, and managed the business better. Northstar got a percentage of USRM shares and a seat on the board in return. From that point, the stock went from .002 to as high as .17. The FDA has since harmed the share price.
Right now, the FDA has publicly agreed to give stem cell companies like USRM a long leash for the next 3 years. During that time, USRM is able to increase it's business and demonstrate that their methods are in fact safe and effective. USRM increased it's chances for success by hiring a law firm that specializes in getting a product through the FDA. That lawfirm also is able to establish a business relationship with the FDA that could prove very beneficial. We are now seeing the stock price re-balance with the new FDA guidelines (that benefit the USRM) and the hiring of this law firm which will give USRM a huge tactical advantage.
The stock has a really good shot at getting over a quarter within the next month or so. At that point, we may expect a slow steady rise through the first quarter of 2018. As that Q is reported, we should see an OTC stock with very healthy profits. Keep in mind that last 2 Q's we had accounting amortization lines in the balance sheet and income statement reflecting the elimination of toxic debt as well as reducing to a manageable level regular debt. When that amortization falls off with the new year, the stock price could easily see $2 without any news of RMAT approval of Myocell due to exponential increases in revenue we have been seeing as well as state RTT laws in effect and those expected to come online shortly. If however, they get RMAT, expect a buyout for real money shortly after by a company like J&J.
AI
