Back in January 2014, BIONOVELUS INC (OTCMKTS:ONOV) was known as Firstin Wireless Technology Inc. and used to trade under the ticker ‘FINW’. At that time, the management used to claim that they are prepared to initiate the “the mobile VoIP revolution”. However, it never happened, and the stock which was then trading close to $0.30 declined to $0.153. The company failed miserably in executing their plans and left many disappointed investors behind.
Bionovelus changed the company’s name and trading symbol in May, and also completed a reverse split at the same time. A couple of weeks ago, it reported that the company will be now headed by Jean Ekobo. Following the PR, the people on the message boards didn’t appear happy and even termed the entity as a scam. The reason was nothing but the announcement of Mr. Ekobo name. However, the reaction is overhyped as any conclusions should be reached only after thorough investigation. They should not depend on the factors like how the CEO looks or talks.
There are many factors that make the arguments with the people who state Bionovelus as a scam difficult. Instead of having an office, the company makes use of a mailbox rental service. As expected, the financial performance of the company is quite dismal. As per the financial report released at the end of 2Q, the cash reserves stood at $7,689. The total assets came at $1.18 million against the total liabilities of $1.027 million. BIONOVELUS INC (OTCMKTS:ONOV) has generated no revenue since inception while it reported net loss of $30,615 in the quarter.
The dismal performance
The numbers paints a bleak picture of the company, and to top it all, its stock movement is rather weird. On August 26, the stock spent the most of the time doing nothing and then at one point exploded to gain nearly 43%. The stock closed the respective trading session at $0.10 per share and from there on has gained further to trade around $0.153.