That’s what we’re trying to figure out after seeing a huge block trade of 600,000 shares go through at 0.297. That comes to over $170,000 in one trade, not to mention the numerous 50,000 share buys we saw come in as well, some even at higher prices. We alerted our members live in our chat room that we were buying shares at 0.34 and the stock proceeded to close at .418 (click here for a chart of VNTH). We’ve been researching Vantage Health the last few hours and we’ve discovered some interesting facts.
First of all, when trying to determine if a stock is about to get promoted you must consider the story behind the company. VNTH has an absolutely great story. Their most recent 10Q describes the company as intending to:
“…build and operate an Active Pharmaceutical Ingredients (“APIs”) manufacturing plant alongside a formulation and packaging plant in South Africa to meet the growing market needs for Anti-retrovirals (“ARVs”) in South Africa and potentially other African countries. The company intends to build an Antiretroviral Active Pharmaceutical Ingredient (API) manufacturing plant in South Africa in order to supply the growing demand in the fight against HIV/AIDS.”
Now pay attention because here are where things get interesting. An 8K filed in late march shows that Moxisign (a 51% owned South African subsidiary of Vantage Health – “formed as a pharmaceutical distributor with the specific intention of bidding on South African government health care contracts and tenders“) entered into an exclusive agreement with Shanghai Kehua Bioengineering Co Ltd, of China on 12/31/2010.
The agreement gives Vantage Health the “exclusive rights over the next 12 months to sell Shanghai Kehua Bioengineering Co Ltd’s Diagnostic Kit for HI V (1+2) Antibody (Colloidal Gold) in the continent of Africa.” Exactly one month later on 1/31/2011, “Moxisign submitted a proposal for the RT41-2011ME, the supply and delivery of rapid HIV test kits to the State for a period of two years. The supply tender is for approximately 14,000,000 diagnostic rapid screen test kits (approximately US$7M) and 4,600,000 Confirmatory rapid screen test kits (approximately US$2.5M).”
Now when we first saw this we didn’t think it was that significant because there is no assurance that Vantage will get the tender. Then we kept reading the filing and learned a little about just who owns the other 49% of Moxisign (remember Vantage owns 51%):
“The remaining 49% of Moxisign is owned by a consortium of local Broad Based Black Economic Empowerment (“BBBEE”) partners.
The 49% BBEE shareholders are made up of several individuals that are led by Kopano Ke Matla Investment Trust (“Kopano”), which is the investment arm of COSATU, South Africa’s largest Trade Union and part of the tripartite ruling government. Kopano is one of the world’s largest Investment companies. Kopano’s Chairman and Trustee, Mr. Prabir Badal, is also on the Board of Moxisign.”
Doesn’t sound like a bad 49% owner to have if you hope to be locking up contracts from the South African government. Now all of this remember is just the story, we’re about to reveal the main reason why we think VNTH is soon going to be the subject of a giant stock promotion.
A S-1 filed 1/18/2011 by VNTH shows that on 5/20/2011, the CEO Lisa Ramakrishnan acquired 60,000,000 shares for herself at a price of $0.001 per share. Then starting on 5/28/2010 – June 2010 the company issued 14,150,000 shares to various parties at an average price per share of .0024. Lisa’s shares were issued with a Rule 144 restrictive legend. Meanwhile the 14,150,000 shares were issued pursuant to Regulation S and Regulation D of Securities Act. The most up to date information on VNTH puts the outstanding shares for the company at 74,150,000 (Lisa’s shares + the other 14,150,000 shares that were issued to various parties).
With today’s trading it is obvious that at least 1 million of those shares have been sold. However that begs the question, why the heck haven’t a ton more been sold? Between .30-.40 all of those holders are up an insane % and $ amount with their sexy double zero cost basis.
We can only think of one reason someone(s) would still be holding onto those shares after being up so much. And that is if they knew for a 100% fact that the stock was going much, much higher. Take for example the well connected investors who were able to buy LEXG @ .12 before the stock traded over $1 the next day commencing what has now turned out to be a legendary promotion. We’re not saying VNTH is going to $10 but we do think the probability is high that the stock is about to be heavily promoted. That’s our take on it anyway and we put our money where our belief is, buying 45,000 shares in the open market today and looking for more tomorrow. Draw your own conclusions
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