As the management of Neuro-Biotech Corp. (PINK:MRES) is changing its mind every now and then whether to accept or not to accept the announced buyout offer, the company’s stock is getting more and more volatile over the past week. In the meantime, the members of that management changed as well.
After a number of controversial updates were issued to keep investors up-to-date, MRES announced in its latest press release yesterday that it has now decided to cancel the announced last Wednesday decision not to proceed with the negations about the buyout offer from AURIC Pharma Service and to resume the offer that gives a share price of $0.15 for the stock of Neuro-Biotech. That information comes only from the company’s press releases, since no SEC filing has by now confirmed any acquisition proposals of that kind.
What also looks highly suspicious is the proposed price itself, which diverges strongly from MRES current market value. Despite the 11.52% increase in the share price, the stock closed yesterday at $0.0184 for a share on a more than doubled average share turnover of 16.02 million shares. The company’s latest 10-Q also does not offer much to justify value of almost $100 million. As of end December 2010, Neuro-Biotech has only long-term intangible assets, no current assets, no revenues and no products.
It only has an agreement with a Russian company named Credo-TM for 500,000 units of MRES “patented products” at a price of $55, which theoretically could be worth $100 million. The only problem is that currently no one knows when and how the company plans to manufacture these products as it does not have the employees, the production facilities and the money to invest in acquiring such.
On Tuesday, MRES filed a new 8-k with the SEC. It says that MRES Secretary and Director has resigned as a results of “ the Company’s new business ventures in the field of neuroscience”. Now Mr. Rustern Yusupov, who is also the President of Credo-TM, has undertaken that positions. As of this Tuesday the company also has a new President, CEO and Director: a Clinical Psychologist named Mr Boris Olekhnovich, who “been mandated to be in charge of introducing modern neuro-biotechnology in some of the largest Russian companies”.