Aperture Health Inc. (OTCBB: APRE), which operates as a fully JCAHO accredited home IV therapy company through its wholly owned subsidiary Triad Therapeutics, started the week off on the right foot, climbing as high as 0.070 after trading as low as 0.028 last Friday. Along with the share price spike APRE has seen volume skyrocket, surpassing the 4.1 million mark by mid-afternoon, significantly higher than their 50-day average of 235,000.
Triggering the activity on Monday has been a promotional campaign playing off of APRE’s press release announcing the execution of a Letter of Intent to acquire Doctors on Call, “one of the largest in-home medical practices in New York City.” While Dr. Paul Rosenstock, CEO and Medical Director of Doctors on Call, stated in the release, “We are excited with the affiliation with Aperture Health for it allows Doctors on Call to rapidly expand both its provider network and range of services to include the lower eight (8) counties of New York State as well as New Jersey,” he didn’t provide any information regarding how APRE intended to acquire the company.
The acquisition certainly won’t be through cash as APRE reported in the most recent quarterly filing that they had $195.81 at March 31, 2012. Truth be told the financial condition of APRE is less than impressive as they also reported revenue of $119,652.02 for the three-month period with the cost of goods sold totaling $72,920.60. Factoring in the $358,875.04 in administrative expenses and $21,933.23 in interest and finance expenses APRE was in the hole $334,076.86 during the most recent frame.
Aside from their financial issues, APRE has a host of legal proceedings still floating around that certainly hinder their chances for growth. Those proceedings are listed in the company’s most recent quarterly filing.
None of this sounds promising for APRE and while they announced the execution of a LOI to acquire Doctors on Call that certainly doesn’t mean the deal will get done, at least not to the benefit of shareholders. It’s not as if APRE has been doing their shareholders many favors as of late, it was less than six months ago that the company was trading at 0.564 but by late May they hit a 52-week low of 0.0131. This coming after September’s 1:500 reverse stock split.
APRE’s inability to maintain any kind of financial stability would likely lead investors to doubt the credibility of the company’s press releases. The wording alone in these press releases is suspect. Looking at their June 15, 2012 release they stated they are “intending to capitalize on the strength of management’s experience in the coordination of care at home and the direct provision of hi-tech disease specific pharmacy services in the alternate care setting.” Intending? There are a lot of things that can prevent APRE from ever fulfilling their intentions.
As it stands APRE appears to be spending more time talking about how excited they are “to be doing business in the ever-growing field of home health care and IV therapy” than actually generating meaningful revenue from this business. APRE may enjoy a day or two of activity thanks to the promotions the company’s share price will almost certainly struggle to maintain its current level of 0.051 and likely dip back down around the level it was at last week.