DeZwarteRidder schreef op 29 maart 2021 14:24:
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Mountain Valley MD: Aggressive Stock Promotion And Hollow Science, 100% Downside
Mar. 25, 2021 10:00 AM ETMountain Valley MD Holdings Inc. (MVMDF)10 Comments
Summary
Mountain Valley MD pivots between hype-filled sectors in quick succession. Previous iteration as a cannabis operation ended with assets incurring near complete losses totalling over C$10m.
Less than a year later, Mountain Valley now claims to have developed technologies capable of revolutionizing medicines including vaccines and a treatment for COVID.
MVMD's inventor and lead scientist has peddled the same technology for years in products like athletic supplements without success. We interview experts who pan MVMD's claims and purported science.
Mountain Valley has no other employees with pharmaceutical experience, and is engaged in tiny deals with obscure, troubling counterparties.
MVMD is up 2000% in the last three months fueled by prolific stock promotion and aggressive marketing. MVMD has cash of $0.06/share, but we believe the equity will prove worthless.
In biotechnology we’ve seen poor business models, incompetent management teams, stock promoters, flawed technologies and bad science. And then we found Mountain Valley MD (OTCQB:OTCQB:MVMDF), one of the worst companies we have ever conducted diligence on, an exceptionally flawed specimen exhibiting all of these qualities with flair.
The purported developer of drug delivery technologies is led by a former salesman and consultant with no evidence of scientific or pharmaceutical experience, and a chief scientist whose prior work is in failed dietary supplements and testosterone boosters. Undaunted, MVMD has pivoted from cannabis, to nutraceuticals, to pharmaceuticals, to COVID – all within less than a year.
Shares are up 2000% in the last three months fueled by a flurry of puffed-up press releases, paid stock promotion and slick marketing videos offering nothing more than inspirational cliches. Drug delivery is an important field, advancements in which can improve outcomes for patients and provide value for shareholders – but MVMD with a staff of non-scientists and a banal liposome technology will not be involved.
We examine MVMD’s scientific claims with two leading experts in the drug delivery space, both of whom find serious concerns which we publish in this report. Mountain Valley trades at C$500m enterprise value but based on our work we believe shares will prove worthless. We discuss the following:
Mountain Valley has pivoted from one hype-filled sector to another - we believe its COVID effort will follow the same disastrous outcome as its failed cannabis endeavor
MVMD’s most tangible progress in cannabis was a series of investments that were written off completely resulting in cumulative losses of over $10m
MVMD’s lead scientist has peddled the same delivery technology for years across multiple product formats without success. MVMD claims the same technology can revolutionize medicine.
We find no evidence of MVMD’s lead scientist completing scientific training or a science-based degree (or any degree); no employees have pharmaceutical related experience
Management touts a TAM in the tens of billions, yet recently signed a tiny $250k licensing agreement with an obscure mushroom counterparty
The Chief Medical Officer of this mushroom company was forced to resign from taxpayer-funded clinic after an audit revealed he embezzled over $2m
MVMD recently halted its stock overnight to announce animal trials and a partner in Bangladesh. We reveal the partner is merely a garment manufacturer
MVMD’s prolific stock promotion includes dozens of ads portrayed as unbiased interviews with known stock promoters
We interview two drug delivery experts - both extremely skeptical of MVMD and “struggle to see any value”
MVMD has only completed one pre-clinical study – in canines. Our experts are baffled MVMD would hype the results, calling them vague and unremarkable
MVMD claims its products are “unprecedented”, yet owns a single relevant patent of questionable value filed 8 years ago
MVMD’s flagship product candidate is a modified form of an unapproved drug with data criticized by most of the medical community including National Institutes of Health, Infectious Disease Society of America and Merck
Three months ago, MVMD raised cash at 80% below current levels with warrants. The stock is up 6x since despite no meaningful news
MVMD quietly equitized $0.5m of debt at $0.07c/unit on the same day it announced an equity financing at $0.22/unit. Neither the debt nor the counterparty was disclosed