Borislav Tonev

Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX) Becomes Interesting Again

by Borislav Tonev October 30, 2015

There was a time when Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX, NNRX message board)'s stock was hovering comfortably above the $1 per share barrier. There was also a time when the company's quarterly revenues exceeded the $1 million mark. Those days are now long gone.

NNRX reached its all-time peaks of over $1 per share a couple of years ago solely because of a massive paid promotion. Predictably, the pump also brought a few enormous crashes which saw quite a lot of money and broken dreams go down the drain. At one point, the pumpers left, but even in their absence, the ticker failed to put up a steadier performance. The volumes slowly disappeared and NNRX continued sliding down until the beginning of August when it hit an absolute bottom of $0.0001 per share.

The share price isn't the only thing that went down. The company hasn't ceased operations, but the revenues and the bottom line are nowhere near as impressive as they used to be. NNRX's overall financial situation has deteriorated quite a bit over the last few years. On April 30, for example, it looked like this:

  • cash: $39,273
  • current assets: $378,221
  • current liabilities: $1,670,370
  • quarterly revenues: $432,414
  • quarterly net loss: $138,059

Clearly, things haven't been going according to plan. That won't deter NNRX, though. They reckon that a simple change in the management team will solve the problems.

On October 7, Dr. Edward Eyring was appointed as NNRX's new CEO and a week later, he issued a shareholder letter with which he explained what he has done so far and what he plans on doing in the future.

The letter sounds rather exciting, and the stock performance over the last few weeks shows that people are ready to trust Dr. Eyring, at least to some extent. The problem is, on October 13, less than twenty-four hours before the shareholder letter, NNRX published an 8-K form which put a rather big spanner in the works. It said that a portion of the company's extremely toxic debt has been converted into more than 267 million shares. In other words, it said that the stock has been diluted by over 150% in a matter of just three months.

The peculiar wording of the 8-K prevents us from calculating an average conversion rate, but considering the terms of the notes detailed in the latest 10-Q, the newly printed shares probably haven't been valued too high. The notes in question are convertible into common stock at discounts to the market price that range from 35% to 42%.

Naturally enough, Dr. Eyring is aware of the issue. He promised in his letter that he will work hard to eliminate virtually all potentially dilutive financing instruments that are currently outstanding. He said that he can't disclose details for now, but he hinted that he might even invest some of his own money in the company. He also made it clear that the purpose of the recently approved reverse split is to bring the company closer to one of the national exchanges.

Thanks to all the promises and forward-looking statements, the stock is once again enjoying some attention. Yesterday, for example, NNRX gained no less than 60% and it found itself at $0.0016 – the highest close in more than three months. We're quite eager to find out what exactly Dr. Eyring has in mind, and we're pretty sure that the same goes for the people who have put their money on the line over the last few weeks.

They shouldn't forget, however, that historically speaking, investing in NNRX simply because of a press release hasn't been the best strategy. On April 17, for example, the company proudly announced that there's been significant year-over-year sales growth in February and March and some members of the management team said that they expect an even bigger revenue surge for the month of April.

When the 10-Q for the three months ended April 30 came out, however, it showed a year-over-year sales drop of nearly 40%.

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