Eastgate Biotech Corp (OTCMKTS:ETBI) Takes Investors On A Rollercoaster Ride

EastGate Biotech Corp (OTCMKTS: ETBI), the distributor of healthy nutraceuticals, has seen its stock price going on quite the rollercoaster ride recently. Thus, the editorial team decided to take a closer look. In our research, we found out that the recent returns occurred because the company obtained a financial advisor and hired new personnel to try to turn around the company. The new steps are quite ambitious. We will tell you more in this piece. But, first of all, have a look at the recent share price movements:SourceValue PropositionEastGate Biotech was founded in September 1999 with the objective of acquiring other businesses. After several name changes and an attempt to buy an interesting business opportunity, in November 2014, the company definitely obtained the name that it uses right now. According to the last 10-k, the business objective of the company is "developing, formulating and ultimately commercializing innovative pharmaceutical, nutraceutical, food supplements and consumer health products". The company is headquartered in Toronto, Canada.ProductsThe company commercializes seven natural products. Here you can find a brief description:

• E-Drops: it is used to combat urinary and vaginal tract infections and contains antibacterial and antiseptic.
• Essential D: it uses nanotechnology and Vitamin D3 to help improve the body’s digestive, cardiovascular, and immune systems.
• Puralen: it helps cleaning colon and the urinary tract using herbal extracts of Juniper, Lavender, Eucalyptus and Pine Needles.
• GluCora: it is recommended for diabetics as it increases body sensitivity to insulin. The product contains highly bioavailable combination of Banaba extract (18% Corosolic acid), and Alpha-Lipoic acid.
• VCleanz: it is an antibacterial wash for fruits and vegetables.
• Cleanezze: it is a hand sanitizer.
• Warts X: it is very effective for the treatment of warts.

Additionally, EastGate is planning to commercialize two new products: Nano Hepatal Herbal Drops that will help detoxify the liver, and ShieldX that will help protect against common sources of radiation like x-rays, CT scans or airport scanners.Recent DevelopmentsShareholders should appreciate that the company keeps the investment community very well informed. The amount of press releases is very high. This is very important for a public company. The most important communications in April were the following:On April 29, 2017, the company hired Mr. William (Bill) D. Abajian, who is an M&A expert and business developer. With his background, the company has added 30 years of professional experience in the pharmaceutical and biotechnology industry. From his biography, his remarkable works include his work in Electro Nucleonics Inc., the foundation of CPG Inc. in 1988, The Abajian Group LLC and his positions as CEO, Treasurer, and Vice President in several companies in the same sector. In our opinion, the deep expertise of Mr. Abajian in the M&A markets will help the company, perhaps with a restructuring plan, buying back shares or contacting third parties that may buy out the company.Previously, the company announced that it had hired Gunpowder Capital Corp as its financial advisor. This news is very important as Gunpowder will help the company introduce its business to the investment community. In our opinion, the fact that such a small company hired a financial advisor is very positive and could explain part of the April's uptrend in the share price. Why? Because the advisor will make use of his connections in the investment community to increase the company awareness, which at the end of the day means a very good thing: liquidity. Our email subscribers know the higher the liquidity in the market, the higher the share price.Other communication, which we don't consider key in April, was the appointment of Dr. Ishaan Sundar as new Medical Director of its recent acquisition ‘OMNI Surgery and Anti-Aging Centre’.What happened in the beginning of April?Sharp investors probably remarked that the share price collapsed in the beginning of April. Well, we did our research and figured out that the only way to explain such a fall should be the announcement of new information. The company did not issue new shares at this time, so we went to check whether the company had issued any new press release. We saw that on April 4 and 7, 2017, it was announced that a new joint venture was signed with AC Nova Technologies Inc. (ATI Pharma) to develop a rejuvenation program together with EastGate Biotech. In our opinion, the new program could not have caused the collapse because joint venture may create new products that increase the revenue line of the company.Another explanation could be the sale of securities by insiders or institutional investors, but we did not find anything like that here. Anyway, in our opinion, we may get to know what will happen in the near future as more information comes to light.ConclusionEastGate has experienced an upside trend at the end of April, thus we researched the news communicated by the firm to find an explanation. We found out that the company hired an M&A and business developer specialist to try to turnaround the company. Additionally, the company hired a new financial advisor, Gunpowder Capital Corp. Finally, we tried to find the reasons behind the collapse in the beginning of the month, but we could not find news to justify it. ETBI remains a volatile play and one which investors need to stay on top of the latest developments. Thus, we encourage investors to stay alert. We will be updating our subscribers as soon as we know more. For the latest updates on ETBI, sign up below!Disclosure: We have no position in ETBI and have not been compensated for this article.