TEND MEDICAL CORP (PINK: XMDC) stock price continues to rally after the company has recently stepped up to confirm a pending merger with BioHarp Korea, a division of Uni Bio-Tech, Inc. Since the first announcement of merger LOI the stock has climbed astounding 2100% and seems not to be stopping here.
The merger arises from the need to proceed with the marketing of their BioHarp medical imaging device. A handheld nanotechnologic cancer detection device looks like something that's gotta have tremendous potential. After the merger company will be targeting a rather large nanotechnology market which is calculated to reach $1 trillion in the coming 10-15 years.
The merger will allow the Korean company to become a public entity and thus raise funds through equity or debt instruments. Even with the potential of their device the company is still not generating revenue from it just yet so this will not become a double digit stock overnight.
On the other hand, while it's still a penny stock we see some pretty amazing price percentage increases. On Monday the stock settled down with another 100% addition to its value. In the current situation it will probably continue to rise until the exact date of the merger is announced. With the merger complete the company will change its trading symbol and I'm guessing the traders are likely to take their profits just before that happens (even thought the share structure will remain intact we still need some reason for profit taking).
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