Novo Integrated Sci (NASDAQ: NVOS) down 54% – we told you it was a dog, a disaster
Novo Integrated Sciences (NASDAQ: NVOS) shares are down at least 54% today. Sure, the ticker shows them as being up 300% but that’s a nominal price rise. The real price, the one that affects wallets, is more like down that 50 to 60% including this morning’s actions. The base problem here is that the management seem to be in the grip of a delusion. That half a dozen different extremely unlikely funding sources are just about to come through. We have suggested that, actually, they’re being set up for advance fee frauds. Not because we know that this is so but because in our opinion the offerings look like, smell like and in our opinion are advance fee frauds.
So Novo has announced a reverse stock split: “Novo Integrated Sciences, Inc. (NVOS) will effect a one-for-ten (1-10) reverse split of its Common Stock. The reverse stock split will become effective on Tuesday, November 7, 2023.” Well, OK, that means the nominal stock price should rise 1,000%, or 10x. It hasn’t.
Novo Integrated Sciences stock price from Google Finance.
The nominal price is $1.20, the starting price before the split announcement was 26 cents or so, the final post split price should be $2.60. A 54% price drop in real terms therefore.
So, why? Well, there’s the idea that this money is about to come through: “Novo Integrated Sciences Advised Receipt of Proceeds of RC Consulting Promissory Note Expected in 3-5 Business Days” As we’ve commented on that before we don’t think so, we really don’t. That cash is not about to arrive at Novo Integrated: “15 year unsecured money at one and a half percent? No, doesn’t exist. “The RC Note is unsecured and there is no provision for the conversion of debt, issuance of any class of shares, or the grant of any warrants by the Company to the Buyer. The Company is expecting to receive an initial draw against the $57,000,000 in the near future.” No, we do not believe this. There are no circumstances under which we would believe this.”
They’ve also announced this: “BELLEVUE, Wash., November 3, 2023 – Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”) today announced the issuance of the underlying One Billion Dollar gold backed bond (the “Bond”) specific to the previously disclosed Master Collateral Transfer Agreement. The issuance of the Bond is the initial step in the establishment of the instrument to commence the legal transfer of the collateral for the exclusive benefit of the Company. The instrument is subject to filings and safekeeping deposit creating authentication and validation for the transfer and leverage of the collateral for the benefit of perspective lenders.”
As we’ve also said about Novo Integrated: “It does amuse us that respected news outlets are reporting this straight. Maybe it’s the early morning and no one’s thinking yet Think on it for a moment, no one does “transfer” $1 billion in collateral to a $40 million company. You want to invest in the company with that sort of sum then you buy the company. This is simply total nonsense. Our best guess – a pretty strong insistence in fact – is that this is an attempt to gain an advance fee.” Really, this just isn’t how the financial world operates.
We’ve also more on Novo Integrated Sciences here.
We remain with our prediction. No real money is about to turn up at Novo. These are not real offers of financing, not in the slightest. This is all nonsense, funny if it weren’t for the fact that real money is involved.
