Todor Pichurov

Pharmacyte Biotech Inc (OTCMKTS:PMCB) Files Restated Reports, Drops

by Todor Pichurov January 21, 2016

This Tuesday Pharmacyte Biotech Inc (OTCMKTS:PMCB, PMCB message board) put up the restated financial reports the company announced were coming earlier. Yesterday the ticker dropped some 7% down to $0.067 per share on daily volume that went back up in the millions.

On the last day of 2015 the company published a statement of non-reliance covering a number of previous reports. The issue that led to the need to restate was described as incorrect accounting of cashless exercise warrants that were accounted for as liabilities, while the correct way would be to account for them as equity.

The restated quarterly for the three months ended July 2015 now lists a net loss figure that is triple that in the original filing, up at $1.5 million. Net loss for the quarter ended October 2015 is up from $1 million to $1.6 million in the restated filing.

PMCB secured $1 million in financing through a deal that involved the sale of 17 million shares of common stock priced at $0.06 apiece, as well as the attached warrants to purchase an additional 17 million at $0.12.

It would make sense for the market to want to get its shares at the same price they are being offered to big investors so the move down from seven cents per share is not too difficult to fathom, especially when coupled with the details of the restatements.

On the bright side, there have been no traces for stock pumps targeting PMCB for nearly two full months now and considering the fact that PMCB was one of the stocks that pumpers touted most doggedly through 2015, with over 160 emails sent over the year, this is quite an achievement.

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