$5 to $10 a share? That would be an increase of about 110 times to 220 times in price/market cap from today? For a company that just did qty-3 (in 2014), life-line "financing" deals of $32.5K + $32.5K + $35K = $100K dollars to hopefully pay their next month or so of immediate bills?
At $5 to $10 a share, the market cap would be in the range of 420 million shares X $5 or $10 = a range of $2.1 BILLION to $4.2 BILLION dollars. Wow, and that number would be based on what?
Lets put it in a little perspective. Of over 11,000 IPOs in the last 30 years, only 440 companies have reached $1B/yr. in revenue. That's 440/11,000= .04 X 100 = 4%. Yep, 4% of ALL IPOS. The largest source of billion dollar revenue companies in the US has been specialty retail.
And I don't believe ANY of those 440 companies, that ever reached the magic $1 BILLION in revenue (to put them in the billion plus market-cap club, stratosphere of all businesses ever started or created- many in business for 100 yrs or more before reaching $1 billion in sales) was ever a penny-stock. If it can be proven different, would love to see even a single case presented. Nearly all those companies, if not all, went public at $20 or $40 or more a share, were often profitable from day one, and never traded much below their initial IPO price and were certainly never a penny stock.
A common misconception in the market is that MSFT or Walmart or Cisco or whoever was once a penny stock when people pull up their long term charts. 100% incorrect: their charts only go back so low in price, as they've had so many stock splits as their share prices continually appreciated and never down-trended or ever looked back.
Worried? BHRT is most worried about how to pay just their immediate bills and debt obligations, let alone ever making any real sales, IMHO and via what's stated in their own most recent SEC filings. Latest 10-K, PAGE 25:
"Risks Related to Our Financial Position and Need for Additional Financing
We will need to secure additional financing in 2014 in order to continue to finance our operations. If we are unable to secure additional financing on acceptable terms, or at all, we may be forced to curtail or cease our operations.
As of March 24, 2014, we had cash and cash equivalents of approximately $211,632.80 and a working capital deficit of approximately $13.4 million. As such, our existing cash resources are insufficient to finance even our IMMEDIATE operations. Accordingly, we will need to secure additional sources of capital to develop our business and product candidates as planned. We are seeking substantial additional financing through public and/or private financing, which may include equity and/or debt financings, research grants and through other arrangements, including collaborative arrangements. As part of such efforts, we may seek loans from certain of our executive officers, directors and/or current shareholders. We may also seek to satisfy some of our obligations to the guarantors of our loan with Seaside National Bank & Trust, or the Guarantors, through the issuance of various forms of securities or debt on negotiated terms. However, financing and/or alternative arrangements with the Guarantors may not be available when we need it, or may not be available on acceptable terms.
If we are unable to secure additional financing in the near term, we may be forced to:
· curtail or abandon our existing business plan;
· reduce our headcount;
· default on our debt obligations;
· file for bankruptcy;
· seek to sell some or all of our assets; and/or
· cease our operations.
If we are forced to take any of these steps, any investment in our common stock may be worthless."
And NO, that is not so called, typical "boiler plate" language found in every company's 10-Q or 10-K, another fallacy. How do most penny-stocks end up? Well, statistically, BK or failure is the norm for the vast majority. A penny stock is considered anything often below $5 (SEC definition) a share and certainly under $1 a share. A market cap under $50 million isn't even considered a micro-cap, it's a nano-cap. When you get truly down into "pennies" as in 4 or 5 pennies or whatever, I'd guess (can find the research data if needed) that more than 95% end in BK and total failure. Those are just the simple facts and reality of a long history of markets and public companies IMO and based on easily found, credible research.
