Rich Pharmaceuticals Inc. (OTCMKTS:RCHA)
Shares of Rich Pharmaceuticals Inc. (OTCMKTS:RCHA) traded lower after regulatory fillings showed that the company had issued 39.8 million shares to facilitate the conversion of a convertible note payable to GHS investments. The stock was down by 7.69% in Tuesday’s trading session, to end the day at $0.00120 a share.
A sell-off does not come as a surprise as investors continue to question the impact of new share offerings. Stock dilution is already a big a concern as the development stage company continues to sink into debt.
Investors’ confidence on Rich Pharmaceuticals Inc. (OTCMKTS:RCHA) is at an all-time low if the stock performance is anything to go by. A lack of substantial news to highlight the company’s operations and long-term plans is another headwind that continues to affect its sentiments on Wall Street.
In August, the oncology company issued 32 million shares to satisfy conversion of convertible note payable to GHS Investments LLC. The total number of outstanding shares of Rich Pharmaceuticals common stock as of September 25, 2017, stood at 838,879,628.
The string of share offerings is already raising concerns about the company’s financial health and its ability to continue operating as a going concern.
HypGen Parkinson Disease Collaboration
The last time that Rich Pharmaceuticals Inc. (OTCMKTS:RCHA) issued a substantial update of its operations was in July when it announced the signing of a support and collaboration agreement with HypGen, formerly Mega Bridge Inc. Under the terms of the agreement, rich Pharmaceuticals was to assist its new partner with data needed for the development of Parkinson’s disease treatments.
Rich Pharmaceuticals has amassed a good amount of data on its Acute Myelocytic Leukemia study that would be of significant value to HypGen.
“There is a long tradition in biotechnology to share data when possible because we all have the same aim: To save lives and to prolong productive lives. We are blessed to play a role in that tradition and pleased that our investors will benefit from this agreement,” said CEO Mr. Ben Chang.
Rich Pharmaceuticals Inc. (OTCMKTS:RCHA) was entitled to 15 million shares of HypGen Common stock as part of the signed collaboration agreement.
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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