Borislav Tonev

SpectraScience Inc (OTCMKTS:SCIE) Escapes the Triple-Zero Levels

by Borislav Tonev February 24, 2016

SpectraScience Inc (OTCMKTS:SCIE, SCIE message board)'s latest press release popped up about fifteen minutes before the start of yesterday's session and it announced that the company has acquired the assets of an entity called Oncoscope. Michael Oliver, SCIE's CEO, said that the acquired technology will perfectly supplement what his own company has been developing, and he tried to convince everybody that SCIE is on track to make significant changes to the way the world diagnoses cancer.

What he didn't give out was more details around the deal. He didn't disclose the mechanism of the acquisition and while he did speak about the technology, he said nothing about Oncoscope itself. What we managed to find is that Oncoscope's website isn't operational which may or may not have something to do with the fact that the medical device entity sought bankruptcy protection back in April 2015.

There's no 8-K confirming the deal, either which means that our questions remain unanswered for the time being. That, however, doesn't seem to bother investors at all. Yesterday, they poured $106 thousand into the stock and they helped it climb its way above the $0.001 per share mark.

Investors also seem to be forgetting the fact that SCIE's latest 10-Q isn't exactly pretty:

  • cash: $55 thousand
  • current assets: $646 thousand
  • current liabilities: $8.6 million
  • NO revenue
  • quarterly net loss: $209 thousand

Somewhat predictably, SCIE's horrific financial state has made for a rather disappointing performance. In a matter of just over two months the ticker plummeted from over $0.01 per share all the way down to the triple-zero levels, but the market doesn't seem to be worried about that, either.

Last, but not least, investors are actively ignoring the $496 thousand worth of debentures which are convertible into stock at discounts ranging from 40% to 50%.

Are people making a huge mistake by ignoring these red flags? Or are the Oncoscope's assets really about to become the proverbial jewel in SCIE's proverbial crown?

Only time will tell.

About ten minutes into today's session, SCIE is sitting flat at $0.0012 per share.

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