22 Dec Ekso Bionics Inc (EKSO) – stock research report
On Monday, December 23, 2013, PN Med Group Inc (PNMD) will do a 3.462:1 forward stock dividend and a name/symbol change to Ekso Bionics Inc (EKSO).
Since PNMD is an infant ticker just taken public last year with no trading history, a forward stock dividend while all the shares are still insider owned could be a sign of future unusual trading activity including possibly a paid promotion.
Let's take a closer look at the ticker.
PN Med Group Inc had a very prototypical set-up commonly found in shells that are just being taken public to fail at their original forward looking business plan to be passed off to new ownership.
The entity was incorporated in Nevada on January 30, 2012 using InCorp Services Inc for the incorporation services. The original officers, Pedro Perez Niklitschek (28 years old) and Miguel Molina Urra (27 years old) were both from Chile. Foreign nominee officers are often a very common trait in these types of tickers.
Pedro Perez Niklitscheck was allegedly a manager at a distribution company in Chile called GEPN technology that focuses on the distribution of heavy machinery and engineering equipment from China.
Miguel Molina Urra allegedly worked as a financial accountant for Uvas Chile, a Chilean wine company. Finding people linked to the wine industry is such a common trait in the penny stock stock promotion world.
Pedro Perez Niklitscheck was issued 5,000,000 shares for $5,000 cash making up the entire outstanding share count.
The forward looking business plan for PN Med Group was to become a distributor of medical supplies and equipment to municipalities, hospitals, pharmacies, care centers, and clinics in Chile. The company had a domain at www.pnmedgroup.com.
On May 8, 2012, PN Med Inc filed an S-1 to go public.
At this point PN Med Inc yet to acquire any supplies to sell through their website. The company had no revenues and only $8,443 cash. $5,000 came from the CEO's purchase of 5,000,000 shares and $3,600 came from a shareholder loan provided by one of the shell's original officers.
The S-1 filing was to register 5,000,000 shares for sale at $.02/share to a group of hand picked anonymous seed shareholders. PN Med Inc told the SEC that they would have to raise at least $25,000 to be able to initiate their business plan. That means they would have to sell a minimum of 1,250,000 shares.
Providing the legal opinion for PN Med Inc was Stepp Law Corporation who sits at #22 on our list of attorneys to follow for a future paid promotion. Other tickers linked to Stepp Law Corporation include SLIO and PUNL.
Helping with the accounting was Silberstein Ungar, PLLC.
The SEC approved the forward looking business plan for PN Med Inc on August 6, 2012. PN Med Inc was given the trading symbol PNMD.
After Going Public
Despite selling 1,350,000 shares (which was more than the minimum amount of 1,250,000 shares PNMD told the SEC they'd need to sell to initiate their business plan), PNMD would never end up acquiring or selling any medical equipment. Not surprisingly, PNMD was just another shell scheme only taken public to get free trading shares into the hands of specific anonymous insiders and to be used to pass off to new ownership.
Change of control
We have not seen an actual 8K yet for a change of control, but we do know that starting tomorrow, Monday, December 23, 2013, FINRA has approved a 3.462:1 forward stock dividend and a name/symbol change to Ekso Bionics Inc (EKSO). This is an obvious sign that the ticker will also get new management.
The Nevada business entity has already been amended with a name change to Ekso Bionics Holdings Inc and an authorized share increase to 500,000,000 shares.
Ekso Bionics Inc (originally known as Berkeley Bionics Inc) is actually a Delaware business entity based in Richmond, California founded in January of 2005.
Current officers/directors include:
The company did a Form D filing to do a $12,000,000 public offering on June 22, 2012 and a second Form D filing to register another $5,000,000 in stock to be issued to debt Note holders in November of 2013. The public offering was done with the help of Gottbetter Capital Markets LLC who was paid $500,000 for their assistance.
All of those shares sold/issued will no doubt be involved in a future share exchange between PN Med Inc (now known as Ekso Bionics Holdings Inc) and Ekso Bionics Inc (the Delaware business entity based in California). At this point, until the 8k is filed for the share exchange, all we know for sure is that seed shareholders will now have 4,673,700 free trading shares. This is far short of the amount you'd see in a future paid promotion ticker so EKSO is probably not a prime candidate for a paid promotion, but will it become a slow climber?
None of the officer/directors can be linked to any past penny stocks, but Gottbetter Capital Markets is a familiar name from our past research. Gottbetter Capital Markets LLC is a registered broker agency that is run by attorney Adam S Gottbetter of Gottbetter & Partners LLP.
Gottbetter & Partners LLP did legal work for several past promoted tickers including RACK, BLBK, POLR, MSEH, and LFAP. They also did legal work for one slow climbing Seacoast ticker, EVTI. Gottbetter is also linked to several tickers we consider possible future paid promotions that we have researched on this site.
Adam S Gottbetter is closely linked to ex-broker and current toxic debt provider Samuel DelPresto (SUSA, BRND) who was named in SEC litigation in the past.
The Gottbetter connection certain keeps EKSO on watch for a possible future paid promotion especially if the future share exchange between PN Med Inc (now known as Ekso Bionics Holdings Inc) and Ekso Bionics Inc comes with a lot of free trading issued issued towards Ekso Bionics Inc debt Notes.
More about Ekso Bionics Inc
According to their website, originally Ekso Bionics Inc was founded in Berkeley, California in 2005. Since inception Ekso Bionics has forged partnerships with world-class institutions like UC Berkeley, received research grants from the Department of Defense and licensed technology to the Lockheed Martin Corporation. Today Ekso Bionics continues to pioneer the field of exoskeletons, designing and creating some of the most forward-thinking and innovative solutions for people looking to augment human mobility and capability.
Ekso Bionics Inc manufacturers and sells a wearable bionic suit which enables individuals with any amount of lower extremity weakness to stand up and walk over ground with a natural, full weight bearing, reciprocal gait. Ekso Bionics Inc hopes to make their exoskeleton (wearable bionic suit) something that can be sold and used by members of the general public with lower extremity issues within the next 1 - 2 years.
Several videos about EKSO can be found on their youtube page. More of their story is told in the following videos:
EKSO was even featured on national TV by The Doctors:
Though we do not have a balance sheet for EKSO and they failed to disclose their revenues in their Form D filings, it does appear that EKSO is a real company with a real product. As mentioned near the end of The Doctors video from May of 2012, EKSO hopes to be marketing their product to the general public by some time in 2014.
EKSO definitely looks more like a candidate to be a nice slow climber. As a ticker with a real product and a small float of 4,673,700 shares after the forward split, it has the potential to offer some nice price movement in the future.
We will watch closely for that 8K in the coming days. We'll also watch for EKSO to start to actively trade to see if a nice climbing pattern starts to develop.