US Stem Cell Inc. (OTCMKTS:USRM)
Shares of US Stem Cell Inc. (OTCMKTS:USRM) gained 19.7% after the leader in novel regenerative medicine solutions announced positive results from a study investigating the use of stem cell therapy on degenerative diseases and injuries. According to Chief Science Officer, Kristin Comella, the study demonstrated exceptional patient safety with low complication rates.
US Stem Cell Inc. (OTCMKTS:USRM) study is the first stem cell trial of its kind to address multiple diseases with different delivery routes. The study underscored the safety of autologous stem cell therapy and reportedly gave confidence to investors to push the stock higher.
However, US Stem Cell continues to trade in a downtrend after coming under pressure after rising to $0.13 a share. The stock has shed more than 60% in market value since April, even though it is up by more than 50% for the year. The new study on degenerative disease therapies could be the catalyst to strengthen investor confidence on the stock.
Separately, US Stem Cell Inc. (OTCMKTS:USRM) has submitted Form 8-K to the U.S Securities Exchange detailing a debt restructuring agreement it entered into with Hunton & Williams. The agreement underscores the company’s commitment to cleaning up its balance sheet and lowering the overall debt. The transaction will provide a debt relief of about $393,180.
“Hunton & Williams has been an extraordinary legal partner of the company and we are very grateful for their continued support. Negotiating the Hunton debt allows the company to freeze the interest payments on two notes from 2009 and begin to work towards paying off this long-standing debt,” said CEO, Mike Tomas.
US Stem Cell Financials
Improvements in operations and balance sheet has helped US Stem Cell Inc. (OTCMKTS:USRM) post year over year increase in revenue and profit. The company reported its most successful quarter for the three months ended June 30, 2017. Revenues in the quarter were up 104% to $1.38 million from $678,000. The increase was primarily because of expansion in clinic partnerships and growth in international business opportunities
Gross profit in the quarter was up 122% to $985,000, from $442,000 reported in Q2 2016. Income from operations increased to $142,000 from a loss of (-$259,000) in Q2, 2016. US Stem Cell Inc. (OTCMKTS:USRM) exited the quarter with cash flow of $785,000, compared to $165,000 for the corresponding period last year.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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