The stock of Advanced Medical Isotope Corp. (OTCMKTS:ADMD) refused the budge following a rally stemmed from the company’s strategic plan. During late last week, the company disclosed strategic measures in direction to simplify its capital structure and strengthen balance sheet.
Errors and miscalculations
Advanced Medical Isotope Corp. (OTCMKTS:ADMD) notified the error in calculation of conversion of specified convertible debt and warrants into common shares, which indicated issuance of excess common stock than actual. The company stated that the error relates to the conversion of debt notes in November and December 2014.
The error took place as a result of miscalculations, which were caused due execution of such conversions below the par value of $0.001. Advanced Medical Isotope Corp. (OTCMKTS:ADMD) said that the transfer agent issued excess of common stock of the company to the note and warrant holders.
In view of such situation, the company has informed the respective note and warrant holders of the excess issuance and has, therefore, proposed to comply with the laws of the State of Delaware and Federal securities. Ideally, such warrant and note holders are required to return the excess stocks to the transfer agent, or they may choose to offset the remaining debt or warrants with the consideration in order to rebalance.
Advanced Medical Isotope Corp. (OTCMKTS:ADMD) expressed that such actions will positively affect both its balance sheet and capital structure. As much as $800,000 of convertible debt is expected to be eliminated from the balance sheet alongside reducing the derivative liabilities by $11 million. The company anticipates that the change will reflect in its second quarter report. CEO James C. Katzaroff commented that the measure will significantly improve the balance sheet and capital structure of the company.
The stock of Advanced Medical Isotope Corp. (OTCMKTS:ADMD) did not move an inch and closed at $0.00480 as 56.16 million shares traded hands during the last trading session.