Since the promotions for Bioflamex Corp (OTC:BFLX
, BFLX message board
) started its stock has been on a constant sharp decline, reaching a new bottom each day. Yesterday's session was no exception, although the company announced a $10 million funding agreement two days ago.
BFLX dropped to $0.03 yesterday and the session closed at $0.035 for a share, or 16.67% lower than the previous close.
Trading volume amounted 7.5 million traded shares, while technical indicators like the moving averages, MACD and RSI confirm that the share price could go further down.
Our database shows BFLX has been heavily promoted this month with the total amount paid as compensation to the promoters exceeding $592,000. As seen on the chart, however, neither news nor promotion could hold the market value high for a company that has no tangible assets and no operations.
On Tuesday this week, BFLX announced in a press release that it had signed an agreement for an equity offering of up to $10,000,000 that would be conducted at a discount to the market. The closing is subject to the S1 registration statement with the SEC becoming effective, however, meaning that the shares to be issued to the investor are not determined for a long-term investment.
Thus, it is doubtful if that funding commitment could actually serve as validation of BFLX "enormous market potential" as stated by the CEO, at least not until the company has approached production and market launch of any of its intended products.