Manzo Pharmaceuticals Inc (OTCMKTS:MNZO) Is A Low Float Runner

Manzo Pharmaceuticals Inc (OTCMKTS:MNZO), the healthcare company with patents for a probiotic remedy for lactose intolerance, jumped in July on large volume. For what reasons? That is the interesting part. The company did not release any news during the month, and no report was put out regarding the stock. We had to do more forensic research to find out what can be going on. In this piece, we will let you know what we found out. Have a look at the share price spike and note the volume.SourceBusinessMNZO is a very old company; founded in Nevada on January 24, 1980. It has been involved in different industries, as the management tried to enter into the most exciting sectors. In this article, we will focus on the most recent activity; the healthcare industry. On June 18, 2014, Kenneth Manzo, an experienced chemist and licensed pharmacist, was elected as CEO, and President of the company. He changed the company's business strategy by entering the company into the sale of a probiotic remedy for lactose intolerance, as well a remedy for babies suffering from colic and/or digestive gas.Recent DevelopmentsThe most relevant developments after Kenneth Manzo commenced with the company are the following. On June 16, 2014, MNZO initiated lab testings for its probiotic product; Lacto-Freedom™. The experience of the new CEO and the importance of the research were noted in the announcement:

"The company's CEO, Kenneth Manzo, has been working on a Lacto-Freedom™ Probiotic for over 10 years, and has high hopes for what he believes will completely change the lives of people who suffer with this condition. Lactose intolerance is the inability to digest lactose, a sugar found in milk and milk products. " Source

The results of these tests were good. They were put out on September 29, 2014. This text is what you need to know:

"The three month mark in a six month animal study, that the results of the lactase producing probiotic, Lacto-Freedom™, has been very successful. This successful testing brings Manzo Pharmaceuticals, and partner, Celprogen, Inc., one step closer to human clinical trials." Source

On October 15, 2015, it was put out that Celprogen, Inc. and MNZO had begun the human laboratory testing of the company's probiotic; Lacto-Freedom™. We could get to know a little more about the product:

"Considered a nutritional supplement by the FDA, Lacto-Freedom™ has the potential of eliminating the symptoms of lactose intolerance, a condition that millions of people suffer from every day. Patients suffering from the condition cannot consume any dairy containing products without uncomfortable and sometimes painful repercussions because their digestive tract cannot break down lactase, the sugar contained in dairy products." Source

The results were put out on February 16, 2016. According to the company, they were so positive that the company is talking to manufacturers about beginning production. In the last news that we found, which was released on October 31, 2016, the company noted the release of a new website to promote the company's products. Hence, MNZO seems to commencing the distribution and commercialization of its products.Sound Financial SituationThe balance sheet reported in the annual reports of 2015, 2014 and 2013 shows the solid financial shape of MNZO. It shows positive net assets, a lot of intangible assets, and goodwill from the previous merger. Have a look:Cash and Cash Equivalents126--Short Term Investments----Net Receivables----Inventory----Other Current Assets----Total Current Assets12600Long Term Investments----Property Plant and Equipment---0Goodwill110110110110Intangible Assets70707070Accumulated Amortization----Other Assets---0Deferred Long Term Asset Charges----Total Assets192186180180SourceOn the liability side, the company showed no long term debt and only a small amount of total liabilities.Accounts Payable-0--Short Term and Current Long Term Debt11120310310Other Current Liabilities06800Total Current Liabilities11190310310Long Term Debt----Other Liabilities----Deferred Long Term Liability Charges----Minority Interest----Negative Goodwill----Total Liabilities11190310310SourceSmall FloatThe amount of volatility seen in the share price of MNZO may also be explained by the small float:

• Authorized Shares (as of Mar 31, 2016): 1,900,000,000.
• Outstanding Shares (as of Mar 31, 2016): 1,159,522,000.
• Float (as of Mar 31, 2016): 374,243,760

ConclusionWhat can be going on here? It is difficult to explain the recent share price volatility in this case, as the company did not put out news. In our opinion, MNZO's financial situation and the expectation of large revenues could have made market participants acquire shares in the open market. Given that the float is quite small, it doesn't take much to move the share price. Additionally, maybe the company is about to announce something really good, such as a new transaction, or a new drug. We need to wait until the news is put out. In the meantime, follow this name. It is surprising the market and big things could be about to happen.We will be updating our subscribers as soon as we know more. For the latest updates on MNZO, sign up below!Image courtesy of Simon Fujiwara via FlickrDisclosure: We have no position in MNZO and have not been compensated for this article.