Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

A Bad Sign for Shares of Renovacare

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

A Bad Sign for Shares of Renovacare

Article excerpt

It's not good marketing to slap a skull and crossbones symbol next to the name of a life sciences company.

Just ask RenovaCare, [ticker: RCAR], which is based in the Pittsburgh Life Sciences Greenhouse on the South Side. The company's technology, which uses stem cells to heal burn wounds, was acquired from Jörg Gerlach, a medical doctor and University of Pittsburgh professor associated with the school's surgery and bioengineering departments.

RenovaCare describes itself as a "pre-revenue" company, meaning its SkinGun and CellMist technology - which sprays a watery mist of healthy skin cells into a burn wound - isn't being sold yet.

After trading for months in the $3 to $4 per share range, RenovaCare's shares began climbing in late January, jumping as high as $12.82 on Feb. 22.

The next day, OTC Markets, where RenovaCare shares trade, slapped a "caveat emptor" - buyer beware - designation on the stock, indicated by a skull and crossbones symbol on the RenovaCare page on OTC's website. The exchange cited promotion and public interest concerns.

That's a polite way of saying the OTC is afraid the shares are being touted by pump and dumpers - people who drive the stock price higher, then cash in before the stock collapses.

RenovaCare shares have been sliding ever since. By Thursday, they had made their way back to about $5.

Amit Singh, a nonstaff spokesman for RenovaCare, responded to questions emailed to Andrew Danielson, the company's director of operations and only full-time employee.

"The company has not issued a public statement with respect to your questions," Mr. Singh said in an email.

According to a Jan. 8 company news release, OTC Markets notified RenovaCare on Jan. 3 that the exchange had become aware of "promotional activities," including a newsletter published by StreetAuthority that promoted RenovaCare and 12 other stocks.

RenovaCare said it was not affiliated with the author or publisher of the report. The company also stated its officers, directors, third-party service providers and controlling shareholder had "not been involved in any way" with creating and distributing the newsletter or other promotional materials. …

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