Orgenesis (ORGS): Five Top Investment-Killing Risks
by Sonya Colberg, Senior Editor, 3/16/2018 7:35:34 AM
TheStreetSweeper issues an alert for Orgenesis (ORGS) investors.
A few days after trading began on the Nasdaq and a few months after a reverse split, Orgenesis stock has gone crazy … not in a good way.
It’s not good because the business has not changed and simply can’t support the $150+ million stock market valuation.
Though it touts itself as a medical product company, the truth is that it is multi-millions of dollars, tremendous dilution to stockholders and many years away from getting its diabetes product to market… if it ever happens.
Instead, Orgenesis is actually in the fiercely competitive world of manufacturing drugs for other companies. The company has the arguable disadvantage of an overseas manufacturing plant. Plus Orgenesis lost $12.4 million from its manufacturing business last year alone.
The company’s viewpoint is here. Meanwhile, let’s consider five top risks presented by Orgenesis:
*1. Cash Hungry
On revenue of $3.4 million, Orgenesis net loss hit $865,000 last quarter.
That was considered a good quarter. So it’s easy to see that the company survives on a steady diet of stock selling and convertible debt. In the last couple of months, the company had to enact a private stock offering to raise $1.2 million so it could keep the lights on a couple more quarters.
Even though it has done almost nothing to advance its technology, the company burns through about $1 million per quarter. Any attempt to advance would require some 50 times that figure.
It's hard to take the former "Business Outsourcing Services" seriously, as it began repositioning itself as a drug development company back in 2011. The company has had plenty of time to advance, yet its working capital is a negative ... $-10 million.
*2. Loans Coming Due
The company’s debt is piling up and clamoring for attention as notes convertible to stock come due.
The company warns that other than converting those notes to stock or somehow raising a lot of money, “we may not be able to pay them when due.”
“As of November 30, 2017, we owed approximately $8.7 million in principal amount and accrued interest under convertible loan agreements with third party lenders with varying maturity dates, the latest of which is August 22, 2019.”
*3. Overseas Ownership, Operations
Most Orgenesis directors and executive officers live in Israel and Belgium.
“The majority of our assets are located outside the United States,” SEC filings state.
If the company has nothing to distinguish itself in the highly competitive outsource drug manufacturing business ... besides a foreign plant and other assets, that's not much.
Foreign ownership and assets can be risky because U.S. investors may well have trouble asserting any claims in other countries, and the U.S. courts and securities laws may be ineffective overseas.
*4. Potentially Dilutive Raise Looms
RenovaCare (RCAR): Investigation Or Other Issues Spark Skull-And-Crossbones Designation
by Sonya Colberg, Senior Editor, 2/26/2018 7:33:40 AM
TheStreetSweeper releases a RenovaCare investor alert.
The stock has been hit with OTC Markets' skull-and-crossbones designation.
OTC reserves the skull-and-crossbones for stocks with major concerns including: An investigation, spam email promotions, and disruptive corporate actions.
Other concerns include:
*RenovaCare’s OTC designation is the most ominous development to date.
*RenovaCare has applied Rule 144 to allow the technology inventor to sell all of his stock immediately.
* We’ve asked why the inventor is selling. Is he doubtful about the technology’s value? Doubtful of the company’s future or the absurd $685 million valuation? No response thus far.
*The majority stockholder, Harmel Rayat, is still on course to sell over 2 million shares. That registration remains unaltered, despite some investors’ misunderstanding that the stockholder has backed off.
RenovaCare (RCAR) has received a designation reserved for the worst of the worst stocks, the OTC Markets' skull-and-crossbones:
RenovaCare trades on the Over-The-Counter exchange, reserved for stocks that lack the right stuff to trade on the Nasdaq or New York Stock Exchange.
Now, the OTC has slapped RenovaCare with the caveat emptor warning.
(Source: OTC Markets, TheStreetSweeper)
OTC applies the skull-and-crossbones symbol when it becomes aware of:
* Investigation of Fraud or Other Criminal Activities — There is an investigation or other indication of fraudulent or other criminal activity involving the company, its securities or insiders.
Other issues that may have entered into OTC’s decision to place RenovaCare in the bad category include:
*Stock promotions with inadequate information for the public -
This may include “spam email, unsolicited … news releases, whether published by the company or a third party.”
*Other public interest concerns -
Concerns “may include but are not limited to promotion, spam or disruptive corporate actions.”
(See OTC’s caveat emptor policy overview here)
The company has not responded to our numerous emailed and phoned requests for comment, including several new requests.
Meanwhile, there is yet another cause for concern about the experimental spray-on skin company, RenovaCare…
*Technology Inventor Is Registered To Sell Stock
The technology developer, Jorg Gerlach, can now SELL EVERY SINGLE SHARE of his RenovaCare stock.
RenovaCare, which paid just $400,000 for the technology, recently disclosed that Dr. Gerlach is now free to sell everything …
“The Company has determined that all shares required to be registered on behalf of Jörg Gerlach, MD PhD. may now be sold without restriction under Rule 144…”
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Please Select a File To Upload.<% Case 2 ForWriting = 2 adLongVarChar = 201 lngNumberUploaded = 0 'Get binary data from form noBytes = Request.TotalBytes binData = Request.BinaryRead (noBytes) 'convery the binary data to a string Set RST = CreateObject("ADODB.Recordset") LenBinary = LenB(binData) If LenBinary > 0 Then RST.Fields.Append "myBinary", adLongVarChar, LenBinary RST.Open RST.AddNew RST("myBinary").AppendChunk BinData RST.Update strDataWhole = RST("myBinary") End If 'Creates a raw data file for with all da ' ta sent. Uncomment for debuging. 'Set fso = CreateObject("Scripting.FileSystemObject") 'Set f = fso.OpenTextFile(server.mappath(".") & " aw.txt", ForWriting, True) 'f.Write strDataWhole 'set f = nothing 'set fso = nothing 'get the boundry indicator strBoundry = Request.ServerVariables ("HTTP_CONTENT_TYPE") lngBoundryPos = InStr(1,strBoundry,"boundary=") + 8 strBoundry = "--" & Right(strBoundry,Len(strBoundry)-lngBoundryPos) 'Get first file boundry positions. lngCurrentBegin = InStr(1,strDataWhole,strBoundry) lngCurrentEnd = InStr(lngCurrentBegin + 1,strDataWhole,strBoundry) - 1 Do While lngCurrentEnd > 0 'Get the data between current boundry an ' d remove it from the whole. strData = Mid(strDataWhole,lngCurrentBegin, lngCurrentEnd - lngCurrentBegin) strDataWhole = Replace(strDataWhole,strData,"") 'Get the full path of the current file. lngBeginFileName = InStr(1,strdata,"filename=") + 10 lngEndFileName = InStr(lngBeginFileName,strData,Chr(34)) 'Make sure they selected at least one fi ' le. If lngBeginFileName = lngEndFileName And lngNumberUploaded = 0 Then Response.Write "
The following Error occured." Response.Write "You must Select at least one file To upload" Response.Write "
Hit the back button, make the needed corrections and resubmit your information." Response.Write "
" Response.End End If 'There could be one or more empty file b ' oxes. If lngBeginFileName <> lngEndFileName Then strFilename = Mid(strData,lngBeginFileName,lngEndFileName - lngBeginFileName) 'Creates a raw data file with data betwe ' en current boundrys. Uncomment for debug ' ing. 'Set fso = CreateObject("Scripting.FileSystemObject") 'Set f = fso.OpenTextFile(server.mappath(".") & " aw_" & lngNumberUploaded & ".txt", ForWriting, True) 'f.Write strData 'set f = nothing 'set fso = nothing 'Loose the path information and keep jus ' t the file name. tmpLng = InStr(1,strFilename,"") Do While tmpLng > 0 PrevPos = tmpLng tmpLng = InStr(PrevPos + 1,strFilename,"") Loop FileName = Right(strFilename,Len(strFileName) - PrevPos) 'Get the begining position of the file d ' ata sent. 'if the file type is registered with the ' browser then there will be a Content-Typ ' e lngCT = InStr(1,strData,"Content-Type:") If lngCT > 0 Then lngBeginPos = InStr(lngCT,strData,Chr(13) & Chr(10)) + 4 Else lngBeginPos = lngEndFileName End If 'Get the ending position of the file dat ' a sent. lngEndPos = Len(strData) 'Calculate the file size. lngDataLenth = lngEndPos - lngBeginPos 'Get the file data strFileData = Mid(strData,lngBeginPos,lngDataLenth) 'Create the file. Set fso = CreateObject("Scripting.FileSystemObject") Set f = fso.OpenTextFile(Server.MapPath(".") & "" & FileName, ForWriting, True) f.Write strFileData Set f = Nothing Set fso = Nothing lngNumberUploaded = lngNumberUploaded + 1 End If 'Get then next boundry postitions if any ' . lngCurrentBegin = InStr(1,strDataWhole,strBoundry) lngCurrentEnd = InStr(lngCurrentBegin + 1,strDataWhole,strBoundry) - 1 Loop Response.Write "
File(s) Uploaded" Response.Write lngNumberUploaded & " files have been uploaded.
" Response.Write "
" End Select %> more...
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