....do you guys think SNRY will have to raise aditional capital after R/M ?? if Yes , i think we are in trouble !....
FIRST CHINA PHARMA GROUP (OTC:FCPG, FCPG message board) has been rushing down progressively over the past week. Yesterday, the stock sank even deeper by losing the next 14% of its price and closing the day at $0.82 per share. Considering the fact that just a couple of days ago the stock price was over $1.00, everyone is curious where is it going to now?
Apparently, investors are getting more and more disappointed by FCPG and the stock keeps falling down. A reasonable explanation on the fall could be the lack of news on the company's business lately. After providing an update on its capital raising, First China filed an exchange agreement with the company's structure included which, however, failed to inspire traders due to the number of risk factors listed inside.
First China Pharmaceutical Group, Inc. engages in the drug logistics and distribution business through drug stores, medical clinics and hospitals in the People's Republic of China. After the exchange agreement, FCPG reported its quarterly results, which were not able to impress anyone either.
According to the 10-Q, First China finances its operations through revenues from the sale of its products and services, the private placement of equity and debt securities and short-term bank borrowings. The management team believes that although its funds are adequate to conduct the company's current operations, it will have to raise additional capital. Meanwhile, if FCPG does not meet its revenue objectives, the company may need to sell additional equity securities, which could result in dilution to current stockholders
