Creative Medical Technology Holdings Inc (OTCMKTS:CELZ) has broken out already this week, with shares powering above recent range resistance in the $0.015 area, to approach a potential test of the $0.02 level. Volume has been picking up on the move, and we are talking about a stock with a float of just 15.8M shares. So, this little thing can move if pushed. And right now, it’s getting a push.
To exacerbate that push, the company just announced that additional debt in the amount of $332,000.00 has been extinguished. According to the release, “as previously announced Creative Medical Technology Holdings, Inc. took on debt in order to advance our technologies and continue towards our goal of commercialization and cash flow.”
Creative Medical Technology Holdings Inc (OTCMKTS: CELZ) bills itself as a company that is engaged in stem cell research and applications for use to treat male and female sexual dysfunction, infertility and related issues. It holds a patent for its erectile dysfunction (“ED”) treatment and was granted a license by Los Angeles Biomedical Research Institute at Harbor-UCLA Medical Center, a non-profit biomedical research and education institute (“LABIOMED”), for the infertility treatment.
It has also filed a patent application focused on physical manifestations of female sexual arousal disorder, as an extension of the work with stem cell therapies for ED. Following testing of its ED treatment, Creative Medical intends to market treatment kits to physicians for use with their patients suffering from ED. During first quarter 2016, it commenced a 15-month clinical trial study being conducted at UCLA by LABIOMED on the efficacy and safety of the ED treatment.
The study involves testing on 40 subjects. Following further testing, Creative Medical also intends to market licensed products under its infertility technology license and the female sexual dysfunction patent application.
According to company materials, “Creative Medical Technology Holdings, Inc. is a clinical-stage biotechnology company currently trading on the OTCQB under the ticker symbol CELZ.”
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As discussed above, the stock has been on the move in recent days, breaking out above its multi-month trading range ostensibly on the news that the company has cut down on its debt and is heading into some more publicity for its flagship ED treatment.
“We continue to focus on the business at hand and our portfolio including issued patents for the treatment of erectile dysfunction, degenerative disc disease and our amniotic derived stem cell as well as patents pending in the area of neurological damage due to radiation toxicity and stroke amongst others,” said Timothy Warbington, CEO of Creative Medical Technology Holdings, Inc.
The company also reiterated that it will be exhibiting at the American Urological Association conference in May 2018. Management noted that the company is “excited to introduce CaverStemTM to a broad base of the urological community.”
It’s also important to remember that this is a tight float play, as noted above. The general ramp higher in volume can tend to exacerbate the action in stocks like this. And prospective shorts should take great care before wandering in a betting against this type of stock as the action heats up. Even if it may be lower down the line, that doesn’t mean it won’t rip your face off first. The action on Monday was certainly a good example of that.
Now commanding a market cap of $4.7M, CELZ has virtually no cash on the books, which is balanced by about $502K in total current liabilities. One should also note that debt has been growing over recent quarters. CELZ is pulling in trailing 12-month revenues of $5K. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling at 0% as of its latest reporting period. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $CELZ stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CELZ, either long or short, and we have not been compensated for this article.