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Sunshine Biopharma, Inc. (OTCMKTS:SBFM) Is A Sell As Short Sellers Remain In Firm Control

Sunshine Biopharma, Inc. (OTCMKTS:SBFM) Is A Sell As Short Sellers Remain In Firm Control
Written by
Jim Bloom
Published on
September 4, 2018
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A bear run that has engulfed Sunshine Biopharma, Inc. (OTCMKTS:SBFM) since the start of the year is still in play, despite the stock showing signs of bottoming out. The bounce back appears to have met stiff resistance as short sellers remain in firm control.Sunshine Biopharma Price AnalysisSunshine Biopharma has lost more than 70% in market value since the start of the year. While the downtrend appears to have lost momentum in recent trading sessions, the stock remains susceptible to further declines, given the lack of solid catalysts needed to trigger a turnaround in the direction of trade.The stock is currently trading at the $0.003 level, after bottoming out from the $0.002 handle. Having met stiff resistance at the $0.005 mark, the stock could drop back to the key support level at the $0.002 mark. SBFM Daily ChartBelow the $0.002 mark, the long-term downtrend could gain momentum conversely push the stock further lower. The stock needs to rise and stabilize above the $0.005 mark, to have any chance of bringing to an end the long-term bear trend that continues to raise serious concerns about the company’s ability to continue operating as a going concern.Before we look at the catalysts, the company is clinging on to avert a further slide, let ’s look at what it does in pursuit of growth and shareholder value.About Sunshine BiopharmaSunshine Biopharma casts itself as a pharmaceutical company, focused on research, development, and commercialization of drugs for the treatment of various types of cancer. The company’s lead products is Adva-27a, a proprietary anticancer compound.Tests on the compound have shown it can be relied’ upon, to destroy Multidrug Resistant Cancer Cells as well as Small-Cell Lung Cancer and Breast Cancer Cells. The company is planning to conduct clinical trials of the compound on the treatment of Pancreatic Cancer in Canada.Recent DevelopmentsA bounce back from all-time lows of $0.002 follows the announcement that Sunshine Biopharma has signed a service agreement with Utah Based Quintessential Biosciences. In a press release, the pharmaceutical says it will work with Q Sciences on the registration of a new line of products with Health Canada.The company is yet to issue finer details on the kind of products they will be working on or the potential impact of the deal on its operations as well as the value it is poised to generate. The partnership comes weeks after the company announced the purchase of all the necessary equipment for a proposed Microbiology Testing Service.Sunshine Biopharma is to launch the Microbiology Testing service through its wholly owned subsidiary Atlas Pharma.

"This is in line with our stated plans to expand the operations of Atlas. Microbiology Testing is one of the most frequently requested analytical tests for most industrial samples. We are pleased to be adding this new milestone in the growth of our firm," said Dr. Steve N. Silly, CEO of Sunshine Biopharma.

Financing deal ExpirationIn May, Sunshine Biopharma signed an agreement with Jitney Trade Inc. for the extension of an equity financing line of up to $10 million until August 31, 2018. Under the terms of the agreement, the company was to issue 400 million shares of its common stock at a price of $0.02.The company at the time insisted that net proceeds from the offering were to be used for the expansion of the company’s Generic Pharmaceuticals operations as well as analytical chemistry services of its Atlas Pharmaceutical.

“The bulk of the proceeds are intended to be used for the Clinical Development of the Company's flagship anti-cancer compound, Adva-27a. The preclinical tests conducted on Adva-27a have demonstrated the drug's effectiveness at destroying multidrug resistant cancer cells,” Sunshine Biopharma in a statement.

What Next For Sunshine BiopharmaA lack of substantial press release has been the biggest undoing for Sunshine Biopharma in the industry. The management team has failed to come up with substantial updates on what they are doing to safeguard the company’s prospects as well as long-term growth.That said, the stock looks set to continue underperforming in the market given that investors appear to have already priced in, recent developments. With the stock struggling to break out of the current bear run, things could get out of hand as short sellers remain in firm control.Taking a back seat and waiting for further confirmation may be the best player. A partnership with Q Sciences and the launching of Microbiology Testing Service are not catalysts that one can rely on to push the stock up the charts given the strength of the downward pressure.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.

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