WHAT IS RENOVACARE?
RenovaCare, Inc. is a biotechnology company focused on developing first-of-their-kind autologous (self-donated) stem cell therapies for the regeneration of human organs.
On January 7, 2014, RCAR filed a Certificate of Amendment to Articles of Incorporation changing their name from “Janus Resources, Inc.” (natural resources exploration company) to “RenovaCare, Inc.” so as to more fully reflect their operations. The Financial Industry Regulatory Authority (“ FINRA ”) declared the name change effective as of January 9, 2014. In conjunction with the name change, RCAR changed their stock symbol on the OTCQB from “JANI” to “RCAR”.
So as you can see, from the get go, let’s understand we are talking about a company with less that 3 years of operation in the space. Lets go in deeper into the business opportunity presented in RCAR.
A number of organs have the intrinsic ability to regenerate, a distinctive feature that varies among organisms. Organ regeneration is a process not fully yet understood. However, when its underlying mechanisms are unraveled, it holds tremendous therapeutic potential for humans.
It is important to understand that RCAR can be considered a part of “transplantation business”. The global transplantation market size was estimated at USD 23.5 billion in 2016. The chart below shows the growing demand for these services.
There will be a major financial huge windfall of investment for any company that is coming close to finding the answer to proper organ regeneration. But there in lies the problem, Renovacare isnt make any progress yet it’s stock price has risen over 700% so far as of December 2016. From a humble valuation of $52 million dollars to over $568 million today yet never generating a single dollar in revenue.
Remember, this increase comes regardless of the fact that there have been no material progress made toward their stated goals. But this hasn’t stopped the company from attempting to look like they are making progress by attaching the company’s plans to academic papers that have nothing to do with Renovacare.
Here’s an excerpt from a recent news release located here.
RenovaCare, Inc., (OTCQB: RCAR), today highlighted an analysis of treatment results from 44 patients treated for severe second-degree wide-area burn injuries, as published in Burns, the peer-reviewed Journal of the International Society for Burn Injuries. The treatment method, which involved isolating and spraying the patient’s own skin stem cells on to burn wounds, is the technology underlying the RenovaCare patented SkinGun™* and CellMist™ System*.
This is very misleading use of language that could lead to an unattentive investor pouring thousands of dollars into a company they think has more potential than really is there.
Numbers for 2017 from online resources.
Cash: $1,149,604
Total Assets: $1,314,919
Total Liabilities: $1,110,368
Revenue: $0
Research and Development: $309,503
Total Operating Expenses: $1,898,222
Net Loss: $(2,693,646)
Stockholder Deficit :$(13,745,230)
This company doesn’t even have enough to cash on hand to meet current expenses. It has yet to produce a single dollar in revenue yet it’s stock price continues to go higher.
It is a beneficiary of the manipulation of a low and locked float that will eventually be broken and a deluge of selling will occur.
Here are most interesting insights from financial statements.
We currently have one full time employee, Mr. Andrew Danielson, Director of Operations, and three part-time contractors: Mr. Thomas Bold, President and Chief Executive Officer and Interim Chief Financial Officer; Ms. Patsy Trisler, Vice-President Clinical & Regulatory Affairs; and Dr. Roger Esteban-Vives, Director of Cell Sciences.
Can any company honestly be profitable with only 1 full time employee??
ITEM 1A. RISK FACTORS
Smaller reporting companies are not required to provide the information required by this item.
Company is stating that they will use OTC protections to not disclose materially important information that could prevent you from trading the company stock.
We currently finance our activities through the sale of our equity securities and issuance of debt. There is no assurance that funding will be accessible to us at the times and in the amounts required to fund our ongoing operations.
LOCATION
We do not own any properties. Our corporate offices are located at 430 Park Avenue, Suite 702, New York, NY 10022
Why would a company this poor rent an office in the most expensive commercial real estate center in America? Or maybe they arent renting an office but.. A MAILBOX!!
MANAGEMENT
The individual who holds the top position in the company does not appear to be an American citizen and does not appear have any experience in the field outside of other shell companies that have never shown any profitability. As mentioned earlier, he’s not even a full time employee so what does it matter.
