Novo Integrated Sciences (NASDA: NVOS) is still defending their announcements of potential funding deals. The problem here is that for most people with any experience of the business world the deals look like they’re not real. Yes, of course, odd things do happen out there. But things this odd really don’t. But they’re still out there claiming that real soon now there’s going to be a vast influx of capital.
We talked before of 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.”
And before that about NVOS stock: “Novo Integrated Sciences (NASDAQ: NVOS) stock is up some 140% over the past couple of days. It’s rare that we’re entirely categoric around here, we know that it’s all too possible to fall into error. However, this is one of those opportunities that we’re not willing to touch with your bargepole let alone our own.”
We’re not, you can see, either attracted to or optimistic about this stock.
Novo Integrated Sciences stock price from Google Finance
But Novo is defending these deals they claim they’re being offered:”Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”) today provides an update with respect to the following previously disclosed pending transactions: (i) the Blacksheep Trust One Billion Dollar Master Collateral Transfer Agreement (the “Collateral Transfer Facility”), (ii) the Letter of Funding Commitment for a direct investment in the Company of $40,000,000 from Sheikh Khaled bin Mohammad bin Fahad Al Thanayan (“Sheikh Khaled”) to develop eldercare facilities in Canada, and (iii) the unsecured 15-year $70,000,000 promissory note with RC Consulting LLC in favor of SCP Tourbillion Monaco for a lump sum debt funding of $57,000,000:”
We really are not impressed with this. We have some experience of the field and those look to us like the set ups for advance fee fraud. Sure, we could be wrong. But that’s what they look like to us.
Just as the icing on the cake, there’s this: “Mr. Baron, Trustee. Prior to assuming his role as a trustee of Blacksheep Trust, Mr. Baron was involved in an unfortunate circumstance that cost him his reputation and prompted his shift of focus to charitable services and social economic development.” What could that unfortunate circumstance which banished his reputation be? We think we might even have an idea but we’ll not force the issue here.
We do not believe these stories of funding.