Todor Pichurov

Pharmacyte Biotech Inc (OTCMKTS:PMCB) Regains Lost Ground

by Todor Pichurov January 6, 2016

After a nasty dip to fresh 52-week low at $0.0459, Pharmacyte Biotech Inc (OTCMKTS:PMCB, PMCB message board) started regaining lost ground. The stock logged two consecutive strong sessions, closing up 22% and then up 37% yesterday, even though volume cooled off significantly from the 16.5 million shares traded on Dec 31.

The company put up another press release just two days ago and that was very likely the main engine behind the two strong sessions, along with a bounce from annual lows. PMCB outlined its 2016 milestones and announced this year will see the advancement of its pancreatic cancer program into clinical trials. The full list of bulleted milestones can be examined in the PR itself.

The chief reason PMCB dipped the way it did ahead of the Jan 4 PR is an older announcement. The company stated that three financial reports should no longer be relied upon and would need to be restated because an improper method was used when accounting for cashless exercise warrants. The former and current accountants of PMCB advised that those should be accounted for as equity, while the original reports had them accounted for as liabilities. This restatement will lead to a reduction in liabilities, but at the cost of increasing net loss for the affected periods.

The annual report for the twelve months ended April 2015 will have its net loss affected by an unknown amount that is “to be determined”. Restatements and non-reliance statements are never pretty, no matter how significant the errors are, so understandably, the market punished PMCB by sending it to intra-day lows of under four cents per share on the last day of 2015.

PMCB has been pump-free for two months now. Assuming the constant stock promotions that plagued the ticker throughout 2015 come to an end, there might be more breathing space for PMCB and the stock might eventually be able to reclaim its far higher price ranges from 2015.

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