Rich Pharmaceuticals Inc (OTCMKTS:RCHA) Ran As Expected: Here's What's Next

Rich Pharmaceuticals Inc (OTCMKTS:RCHA) has been a real winner for us over the last few weeks.The company was trading at $0.0006 a share at the time of our previous coverage, which hit the wire back on October 9, 2017.At its most recent close, Rich went for just shy of $0.001, flirting with the removal of a zero from in front of its lead digit and looking set for continued advance as 2017 matures to a close.There hasn’t been anything in the way of press releases from Rich since the company announced a collaboration with an entity called HypGen back in July, so why the recent action and how can we support our statement that we expect the strength to continue?Well, it's pretty simple.In our previous coverage (the one linked to above), we outlined the fact that volume was increasing and that this had translated to a spike in the company's pricing on the open market. We hadn’t seen any real fundamental developments but it looked as though sentiment was warming up somewhat and that the company could be gearing up for some major news. RCHA Daily ChartWhen you've got a float as tight a Rich Pharmaceuticals has, you don't even need major news to get things moving. A bit of a positive development is enough to attract some volume and the volume doesn’t need to be too far in excess of standard daily to push things higher and fast.So our thesis was this: we are taking the uptick in volume as indicative that somebody, somewhere, is expecting some news to hit press. We, in turn, think that a punt on this suggestion could be a nice play, given that the company likely is going to fall anywhere near as fast as it could rise, purely based on the fact that it has traded essentially flat since the announcement that it was teaming up with HypGen, as outlined above.So why the recent run?Well, we got something in the way of news – not from the company, or at least not through standard channels. Instead, Rich filed this 8K with the SEC on October 20, outlining a sale of securities with an accredited investor. Equity sales generally hit a company pretty hard, but this one is structured to basically bring about no negative consequences for current shareholders – at least near-term – and this has allowed markets to focus squarely on the positive implications of the investment as opposed to worrying too much about dilution and that sort of thing.What positive implications?The accredited investor is a lone investor and he/she has purchased 333,333,333 shares of company common stock at $.0003 per share, and warrants to purchase 3the same number of common shares at the same price per share for a five-year term.That’s a substantial purchase, even if it's at a discount to current open market pricing. This, in turn, further reinforces our expectations that we are about to get some big news from the company. Not from a capital perspective, as was the case with the latest SEC filing, but from an operational standpoint.In all likelihood (and as per the most reasonable assumption) this development should relate to the HypGen deal and the collaboration asset. For anyone that missed the update back in July, the collaboration is set up to bring an asset to market that's targeting Parkinson's disease. If successful, the company is looking at a billion-dollar market.Of course, Parkinson's is notoriously difficult to treat and it's very unlikely (based purely on past stats in this space) that the Rich/HypGen collaboration is going to result in an effective asset hitting shelves.With that said, however, this company doesn't need to a regulatory green light to get moving. The program itself should bring with it plenty of potential upside catalysts as it matures through its early stages and beyond.Check out our previous coverage of this one here. We will be updating our subscribers as soon as we know more. For the latest updates on RCHA, sign up below!Image courtesy of allispossible.org.uk via FlickrDisclosure: We have no position in RCHA and have not been compensated for this article.