Borislav Tonev

Medifirst Solutions Inc (OTCMKTS:MFST) Revived by Optimism

by Borislav Tonev February 24, 2016

Bruce Schoengood, Medifirst Solutions Inc (OTCMKTS:MFST, MFST message board)'s CEO, has previously been involved with Evermedia Grp Inc (OTCMKTS:EVRM) (a $0.0003 per share pink sheet stock that is terribly illiquid) and Dynamic Media Inc (OTSMKTS:DYNM) (a Gray Market listed company that hasn't filed any financial reports since 2005). Needless to say MFST's shareholders are hoping that Mr. Schoengood's current penny stock adventure will yield better results than his previous ones. But will it?

MFST has been trying to launch a clever type of laser devices that supposedly erase the effects of aging on the skin. Last year, the company submitted the device for 510(k) FDA approval and a couple of weeks ago, it announced that the Administration has requested some more information. Yesterday, Mr. Schoengood said that thanks to a contract with a big laboratory facility, MFST should have no problems providing the required information on time.

The stream of good news seems to be affecting the ticker. After a couple of green days last week, it managed to reach a close of more than $0.01 per share for the first time in over two months, and thanks to two more exciting sessions, it's now sitting at $0.017 per share.

Not bad for a stock that was extremely illiquid until about a week ago. But will the surge last?

To some extent, this is dependent on the approval of the ambitiously named Time Machine laser system. The latest 10-Q shows that the company is in a desperate need to start generating meaningful revenues and tidy up its financial statement. On September 30, the figures looked like this:

  • cash: $143 thousand
  • current assets: $199 thousand
  • current liabilities: $717 thousand
  • NO revenue
  • quarterly net loss: $108 thousand

The Time Machine system might be effective against skin aging, and it might just be able to fix some of MFST's financial problems. It's going to be useless at undoing the issuance of a massive amount of discounted stock, though.

During the first nine months of last year, a total of 8.9 million shares saw the light of day as a conversion of debt at rates varying from $0.0005 to $0.001 per share. When the 10-Q got published in November, there were still plenty of notes outstanding. Some of them were convertible at discounts ranging from 45% to 50% while others were convertible at fixed prices that could go as low as $0.0001 per share.

The last reported O/S count sits at a relatively low 37.7 million, but despite this, a few months ago, MFST raised the number of authorized shares to 1.5 billion.

We'll leave the conclusion drawing exercises to you.

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