OTC Journal As we stated in our review newsletter
last weekend, we are not optimistic about the future of
the Calypte's stock price, which is a different issue
from the future of the company. Management continues
issuing enormous numbers of free trading shares below the
prevailing market. Recently, the company issued another
44 million options, exercisable at $.025, and convertible
into free trading shares. The suggests the shares will
now trade down to $.025 to find support. Unless the company manages to consummate a relationship
with a major pharmaceutical company, we believe the stock
price will continue grinding lower under the severe
pressure of excess supply.
Calypte announced they will be seeking shareholder
approval for a 1:30 reverse stock split, which must be
viewed as a negative for share value in the short run.
This was announced after the market closed on Friday.
Post reverse split, the company's market value will be
less than $10 million. We believe the technology alone is
worth considerably more.
If they can raise capital with some entity who is
interested in owning a piece of the technology, instead
of stock they can immediately sell into the market at a
discount, this one would have a chance to be a superstar.