VPRS - Reverse Merger With MediPharm Biotech Pharmaceuticals Co. Ltd?

There is almost nothing more breathtaking in this penny stock market then watching a reverse merger type stock run farther and higher than anyone's most wildest expectations.  One only has to go back to earlier this year when GWAY ran from $.01 to over $5.00 in the span of three trading days, to see the type of gains that these reverse mergers can provide.

If you recall the day GWAY's run first started, as I do, GWAY issued an 8-k before the market opened. Until the press release hit the wires, later on in the day, GWAY only traded up a few ticks from $.01 to $.03 a share as most traders ddn't bother to look at the 8k, or thought it was no big deal.  Boy were they ever wrong.   When the press release about the merger hit the wires GWAY exploded on a run that investors dream about.  Up until the press release it seems only a few people had fully digested the 8k filing, which is what I see happening right now with VPRS.  (Below is a chart of the GWAY reverse merger run.)

Yesterday VPRS issued an 8k, a change of CEO and ownership.  Essentially, judging from the 8k, the shell was purchased for 35 million shares of stock, at what price we do not know.  What we do know is that the new CEO is also the CEO of MediPharm Biotech Pharmaceuticals and they expect to post significant revenues in the years ahead.  I could be wrong, but putting two and two together here is not that difficult.  Per a recent company profile MediPharm Biotech Pharmaceuticals  is a private company.  VPRS is a debt free SEC reporting shell stock with over $100k in cash on hand.  It appears MediPharm Biotech Pharmaceuticals  is reverse merging into VPRS and bringing value into the shell.  This value is already starting to be reflected in the share price.

Here is the good stuff:

MediPharm plans to invest in Radiation-Protective Fa-cilities (RPFs) in 150 China Tier 3 hospitals, with each hospital requiring investment of $75,000 for a total of $11.3 million. Vivatuxin® is expected to generate $45.1 million revenue and $13.8 million net profit in 2011, $92.8 million revenue and $36.1 million net profit in 2012, and $143.3 million revenue and $52.1 million net profit in 2013.


Also:


Through a strategic marketing collaboration study with the Ministry of Health of China currently covering 101 hospitals, the company has agreements to supply 20,000 doses of Vivatuxin®, priced at $3,000 each, used for the treatment of advanced lung cancer patients, who have previously failed at least one course of chemotherapy, and is negotiating collaboration with additional 50 hospitals.

These are some pretty impressive numbers and are found here (click to get taken to the document).

These numbers were put together less than a year ago, and now we find this company going public.  This has not been pr'd yet and if this news does get pr'd... well we saw what happened when the pr for GWAy came out.  Right now anyone that hasn't read the 8K has no idea what is going on with VPRS.  I think the reverse merger is certainly what is happening here and could propel the stock to much higher levels.  With the current share structure and financial projections, VPRS is a stock that could really surprise going forward.

These reverse merger stocks are some of the most explosive out there.  Right now we have little to go by other than some recent financial projections.   A lawsuit that comes up when you search the company and CTL was resolved favorably in 2009, so that is not an issue.

Speculating on just how big this could be is the fun part.  We've seen stocks like GWAY and TMSH run far beyond our wildest expectations.  Could VPRS post a similar type move?  Absolutely.  We've already seen this year that anything is possible.  Right now we have some nice information to nibble on which has peaked our interest.  Judging from the revenue projections MediPharm Biotech Pharmaceuticals Co. should bring tremendous value into VPRS and this stock should be added to your watchlist going forward.