Thus Is Why Sunshine Biopharma, Inc. (OTCMKTS:SBFM) Exploded 242%

A 242% surge might as well have reinvigorated Sunshine Biopharma, Inc. (OTCMKTS:SBFM) prospects and sentiments in the market. After coming under immense selling pressure, which resulted in the loss of more than 70% in market value, the stock has once again bounced back.

Sunshine Biopharma Price Analysis

The trigger behind the blockbuster run is the announcement that Health Canada has approved the company’s first over the counter essential micronutrient. Another sign of improving fundamentals is the confirmation that the company has signed an agreement for the manufacturing of an Adva-27a, an anticancer drug. The company’s balance sheet has also received a significant boost poised to support long-term plans.A string of positive developments appears to have triggered renewed investor interest in the stock. The stock has consequently bounced back at the back of high turnover in traded in shares. The recent spike has catapulted the stock to a critical resistance level at the $0.0024 level. SBFM Daily ChartA rally followed by a close above the critical resistance level should open the door for the stock to make a run for the $0.005 mark, the next substantial resistance level. Sunshine Biopharma needs to rally and stabilize above the $0.005 level to reaffirm the emerging uptrend. Below the critical resistance level, the stock remains susceptible to further declines.

What Does Sunshine Biopharma Do?

Sunshine Biopharma is a pharmaceutical company that researches, develops and commercializes drugs for the treatment of different types of cancer. The company lead candidate drug is Adva-27a, a novel treatment for leukemia, lymphoma and vesicular cancer among others.

Why is Sunshine Biopharma Skyrocketing?

Sunshine Biopharma is skyrocketing on huge volumes on the announcement that Health Canada has approved its Essential 9TM. The micronutrient that the company has been working on, contains a balanced formula of nine essential amino acids that the human body cannot make.Deficiency of the essential amino acids in the body leads to loss of muscle, fatigue as well as weight gains. The approved Essential 9TM micronutrient is suitable for everyone from vegans to athletes as well as seniors and dieters. Following the authorization of manufacture and sale, the company intends to start selling the essential amino acids micronutrient in the first week of 2019.The announcement of the Health Canada approval comes just days after the company announced the signing of an agreement for the development of a critical anti-cancer drug, Sunshine Biopharma has since joined forces with Crocus Laboratories as it looks to accelerate the manufacturing of its Adva-7a anti-cancer drug.

Crocus Laboratories Deal

Crocus Laboratories has agreed to help Sunshine Biopharma come up with a large-scale manufacturing process of Adva-27a. The two are targeting a process that will be able to manufacture 2 to 5 kilograms of the anti-cancer drug.Adva-27a is Sunshine Biopharma anticancer compound targeting the treatment of pancreatic cancer. Plans are already underway to use the compound in animal toxicity studies as well as clinical trials.

“Tests conducted on Adva-27a have demonstrated the drug's effectiveness at destroying Multidrug Resistant Cancer Cells […]. Clinical trials for Pancreatic Cancer indication are planned to be conducted at McGill University's Jewish General Hospital in Montreal,” Sunshine Biopharma in a statement.

$10 Million Equity Financing

Sunshine Biopharma has since strengthened its balance sheet as it looks to accelerate the development of its key compounds targeting various types of cancer. The company has since entered into an equity financing agreement with GHS Investments.The Nevada-based limited liability company has since agreed to provide the pharmaceutical company with up to $10 million in equity financing. Under the terms of the agreement, Sunshine Biopharma will have the right in its discretion to deliver puts at GHS. The limited liability company is also obligated to purchase the company’s shares based on the investment amount in each put notice.

“The maximum amount that Sunshine is entitled to put to GHS in each put notice shall not exceed 250% of the average daily trading dollar volume of the Company's Common Stock during the 10 trading days preceding the put date, so long as such amount does not exceed $300,000,” equity financing terms.

What Next For Sunshine Biopharma

While Sunshine Biopharma has taken a significant hit, it has started showing signs of bottoming out from all-time lows. The stock sentiments and prospects in the market have received a significant boost on the Health Canada approval. The signing of an agreement to accelerate the manufacturing of Adva-27a is another development that continues to strengthen investor’s confidence in the stock.Given that the stock is still flirting with all-time lows despite the recent spike, it might be wise to wait for it to rise and stabilize above the $0.005 mark to consider it a long-term play.We will be updating our subscribers as soon as we know more. For the latest updates on SBFM, sign up below!Disclosure: We have no position in SBFM and have not been compensated for this article.