At the end of January when Gold and Solar energy stocks were rallying and football fans were preparing for the Giants-Patriots showdown in the Superbowl, one of the OTC stocks that had virtually no trading activity announced clinical trial news. RepliCel Life Sciences Inc. (OTC: REPCF) reported that all 19 subjects of their First-In-Man hair loss clinical trials had completed their six-month post injection follow-up visit with efficacy results due out in April, 2012. Shares of REPCF which have a current 200 Day average volume of 6,751 began seeing some heavier trading in the penny stock.
RepliCel apparently claims to have found the cure to male baldness with their TS001-2009 study team in Tbilisi, Georgia. Alerts on the penny stock began to circulate in early April claiming that NBT Equities Research LLC, using Tobin Smith as their poster boy, had issued a a $10 price target for REPCF post Phase II results. That would be a 284% gain at the current price of the stock but their picks on the penny stock tout it would be “500% HIGHER from REPCF‘s stock price today.” By looking at the chart below, you can see when the alert was issued assuming their math is right.
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REPCF Stock Snap Shot:
Market Cap: 112.19M
52-Week High
(Jul 14, 2011): 3.50
52-Week Low
(Jan 26, 2012): 1.60
Avg Vol (3 month): 16,464
Avg Vol (10 day): 72,825
Shares Outstanding: 43.15M
Float: 15.57M
5 Day History:
Percent Change: 26.83%
Moving Average: 2.38
Average Volume: 78,206
10 Day History:
Percent Change: 40.54%
Moving Average: 2.23
Average Volume: 66,305
“Replicel has ALREADY recorded 50%+ hair growth in their pre-clinical trials—this is why we are so excited to see the NEXT set of clinical trial results.“
On April 3rd, RepliCel reported that all 19 subjects had completed their 6 month post injection follow-up visit and that the company remained on schedule to release the initial review of efficacy results. The results were quoted by REPCF to be due in April and, considering its currently the 28th at the time of this article, no results. This must mean that, if RepliCel is going to release the results, Monday, April 30th, will be the day.
The company did however issue a press release on Friday to the effect that RepliCel wanted to clarify certain financial disclosures which were overly promotional, misleading and inaccurate.
“Obviously, the time to acquire shares in Replicel is BEFORE the next Phase I/IIa human trial results hit the tape—which is why I am writing you today! This is JUST the kind of next big thing investment I’d LIKE to be able to talk about on Fox News…but I can’t. Replicel is too small (well at least for now) to share their exciting story with the 2 million investors who watch me every week on Fox’s Bulls & Bears (Fox’s rules, not mine.)”
The financial disclosures which were published in stock reports available online and also sent out in the form of a penny stock newsletter, including TheHotPennyStocks.com, hotstocked.com, StockGuru and various other penny stock picks materials published by Lake Group Media Inc. There also is the equity research report which is published by NBT Equities Research/NBT Communications which contains stock price targets coupled with a strong buy recommendation.
Lake Group Media Inc. and NBT Equities Research/NBT Communications were hired by RepliCel to help build public awareness. In other words, to pump the stock.
REPCF Director of Communications, Tammey George ((604) 248-8696) wished in the announcement on behalf of the company to make a general retraction in respect of certain disclosures citing that such certain disclosures were unauthorized by RepliCel. Specifically, RepliCel wished to make clear that, given REPCF‘s current stage of development, stock price targets and estimates pertaining to expected gains in the penny stock, REPCF, share price, as published in the materials circulated by the above are premature and cannot be relied upon. Really!?
From Form 20F: Selected Financial Data (Stated in Canadian Dollars)
| Year ended Dec. 31, 2011 (audited) |
Year ended Dec. 31, 2010 (audited) |
|||||
| Net Sales/Revenues | $ | – | $ | – | ||
| Total Expenses | 3,713,439 | 2,542,525 | ||||
| Loss from Operations | (3,713,439) | (2,542,525) | ||||
| Net loss | (3,713,439) | (2,542,525) | ||||
| Basic and diluted loss from operations and continuing operations, per share | (0.10) | (0.12) | ||||
| Total Assets | 631,419 | 1,308,742 | ||||
| Net Assets (capital deficit) | 401,450 | 685,447 | ||||
| Share Capital | 6,266,739 | 3,344,320 | ||||
| Weighted average number of common shares outstanding (adjusted to reflect changes in capital) | 39,442,240 | 21,567,675 | ||||
| Long-term debt | – | – | ||||
REPCF curently has registered patents for their hair cell replication technology in Australia and the E.U. The company has patent applications pending in the U.S. and many other countries for their hair loss solution, but these pending patents applications may not result in the issuance of any patents. In the past, REPCF patent applications have experienced delays.
About RepliCel Life Sciences Inc.
RepliCel is a British Columbia, Canada, company in the business of developing and patenting a new hair follicle cell replication technology that has the potential to become the world’s first autologous cellular treatment for hair loss in men and women. RepliCel’s cellular replication and implantation technology is designed to grow new hair follicles in patients suffering from androgenetic alopecia. The procedure is also designed to rejuvenate damaged, miniaturized hair follicles in balding scalp skin.
To view the official RepliCel retraction of the penny stock newsletters, click here.
Because RepliCel is based in Vancouver, they are SEC filers, but are not required to issue the standard 1-Q or 10-K filings that U.S. companies report. To view the SEC filings for REPCF, click here.
Bottom Line: If you subscribe for penny stock picks from any of the above mentioned newsletters, you may want to unsubscribe if you wee suckered into the “Billion Dollar Cure for Baldness” and/or “REPCF is going to $10” sales pitch. REPCF has had daily average volume equal to around $20,000 worth on the penny stock for over a year until recently.
Can REPCF jump to $10? That’s would mean that each of the 19 First-In-Man study patients would be worth around 53 cents if that’s what pushes the stock price to $10 since revenues sure aren’t. Add REPCF to your list of penny stocks to watch carefully for an exit if you already were one of those to buy it. If you didn’t, you now have more information than before to conduct your due diligence on. I swear Burt Reynolds would have been better suited for RepliCel’s REPCF penny stock promotion than SNPK‘s Clotamin.
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