Provectus: Strong Sell, Ties To Paid Stock Promoters, SEC Halt Risk, Price Target $0

The Pump Stopper profile picture
The Pump Stopper
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Summary

  • PVCT has just FOUR full-time employees, HQ appears to be a metal barn in rural Knoxville, claim to have effective treatment for cancer with commodity red dye "Rose Bengal."
  • PVCT is connected to questionable paid stock promoters whose other recommendations have recently been halted by the SEC: including FSPM, PHOT, and PTOG.
  • Insiders were paid ~$49m during a 12+ year period while PVCT shareholders accumulated losses ~$150m with zero revenue and shares outstanding have increased 20x.
  • PV-10 has no Phase 3 trial in sight while patents begin expiring in 2016 and appears to have failed their FDA Breakthrough Designation Request.
  • PVCT appears extraordinarily overvalued with ~$750 MILLION fully diluted valuation. I believe fair value is closer to $0 and outline why in this report.
  • Summary

I believe shares of Provectus Pharmaceuticals (OTC:PVCT) are worthless. This report outlines connections between PVCT and some of Wall Street's shadiest participants. The report further outlines a consistent pattern of substantial shareholder losses at numerous companies the current management team and board (including Craig Eagle) have been involved with, several of which have indisputable ties to paid stock promoters. The stocks of many of these companies experienced losses in excess of 90%, several of which were complete wipeouts. It also appears PVCT's BreakThrough Designation request has failed as well.

Perhaps more concerning is the company itself. PVCT has a mere four full-time employees, yet boasts a market cap of $750m on a fully-diluted basis. This eye-popping number is despite a lifetime history of zero material revenue, total management compensation of nearly $50 million (almost entirely for these four employees), and cumulative net losses of ~$150m. The company's R&D line in its 10-K seems to me to be a "black-hole" of aggressive fully-vested warrant grants to undisclosed consultants. PVCT appears to be run out of a metal barn on the outskirts of Knoxville. I believe the company's one drug, PV-10, has no hope of becoming a commercial success as there is no phase 3 trial in process and patents begin to expire in 2016.

PVCT management claim to have found effective treatment to multiple cancers in what they claim is a purified version of a commodity textile and food dye called "Rose Bengal" (aka: Food Red No. 105) that can be bought for $30 at any medical supply store. Recently PVCT stock has gone parabolic on a promotion campaign involving questionable stock promoters while the doctor involved with research into PV-10 was sued by the SEC for insider trading and was recently involved in a failed cancer

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