Anyone know anything about Biocoral BCRA?
It appears to be a scam, but I don't know how they are working it.
It has a shareholder's deficit (-$1,9M), revenues of less than $400,000 per year, debt which is convertible at $0.045/share, a competitor with an apparent lock on the market, yet it trades at $55/share for a market cap of >$600 million.
For anyone interested, here are some more details from the filings:
Biocoral Inc. BCRA OTC:BB
Summary
From 10QSB filed 5/15/2003, company has 11,297,573 shares o/s. At today’s price of $55 that gives it with a market cap of $621,366,515. Moreover, there is debt that is convertible at $0.045/share.
The company had revenues of $98,000 in last quarter and $350,00 in last fiscal year.
The company has a negative book value, with negative shareholder’s equity of -$1,915,673.
There is also a history of doing reverse splits to wipe out shareholders as well as a real competitor in the field.
Details from 10KSB filed 4/23/03:
The issuer's revenues for the year ended December 31, 2002 were $350,300.
The aggregate market value of the registrant's voting common equity held by
non-affiliates as of April 4, 2003 was $169,463,610. [This is now about $600,000,000 with the stock trading >$50, Amit]
The number of outstanding shares of the registrant's common stock as of April
15, 2003 was 11,297,574.
On December 23, 2002, the Company affected a 1-for-15 reverse split of the Company's outstanding shares of common stock.
Management also plans to seek additional equity and/or debt financing
for the Company and, if necessary, request the Company's lenders and other
creditors to extend the due dates of the Company's obligations and/or convert
the obligations to common stock. Accordingly, management believes, but cannot
assure, that the Company will have sufficient liquid resources for the payment,
or the ability to defer the payment, of its obligations as they come due and
continue to operate through at least December 31, 2003.
Employees
The Company, except for its wholly-owned subsidiary Inoteb, currently has no
employees other than its officers and directors who devote as much time as they
believe necessary to carry out the affairs of the Company. Inoteb currently has
10 employees whom are full time. In addition, the Company engages the services
of various scientific and research consulting teams under consulting contracts,
working on research and development projects in different laboratories and
hospitals in France and other countries.
Management believes that it is likely
that the Company will continue to incur net losses through at least 2003,
although it is also likely that such losses will be substantially reduced in the
absence of the nonrecurring charge. The Company also had a working capital
deficiency and stockholders' deficiency of approximately $1,076,000 and
$1,743,000 at December 31, 2002, respectively. The working capital deficiency at
December 31, 2002 was attributable, in part, to the inclusion in current
liabilities of $842,000 of long-term debt obligations. Subject to satisfaction
of due diligence, an accredited investor has committed to fund $500,000 to the
Company to cover operating shortfalls for the balance of 2003.
On March 25, 2002 the holders of the Company's 6% convertible promissory notes
payable (the "6% Notes") agreed to extend the due date from December 31, 2002 to
December 31, 2004. The 6% Notes are convertible at any time, at a rate of $.045,
at the holder's option, subject to Company approval. The 6% Notes were not
affected by both reverse stock splits.
Finally, here is a real competitor who I think has a lock on the market:
Competitor: <http://www.interpore.com/product_proosteon.html>
Thanks for any ideas,
Amit |
