Premier Biomedical Inc (OTCMKTS: BIEI) Making The Right Moves

We are looking again today at Premier Biomedical Inc (OTCMKTS:BIEI) as many things have changed in the company since our last article was published. First of all, shareholders got to know that Premier Biomedical decided to retire the convertible debt. Secondly, the CEO issued a letter, in which this news and the operating performance of the company were discussed. We will explain you all this in our new article, but before anything else take a look at what the stock price has done recently, and note the large amount of shares exchanged around the beginning of March.SourceConvertible Debt Payment - New assessment of the financial perspectiveYes, the large volume that investors experienced in the beginning of March should be attributed to the payment of the debt. The company put out this news on March 2, 2017. The reason for this operation was the pressure that the stock price was receiving from the convertible debt holders. The owners of these securities not only increase the financial risk of the company as they hold debt, but also dilute the shareholders as the convert these products into equity.We do not have the new financial statements of the company, but we can get fair idea by looking at the amount of debt that the convertible debt represented and the previous balance sheet. As of March 31, 2016, the total amount of assets was $61,130, wherein $38,669 is cash. On the liability side, we found that the company received a large amount of investment using convertible notes. We believe that this is good news, as it indicates that business angels and debt holders trust the company and they expect their money back. The total amount of liabilities is $359,659 and the total amount of convertible debt is $178,368. Since this convertible debt was retired, the new amount of total liabilities should be now closer to $181,000.SourceTo sum up, the company has retired half of the debt outstanding. This transaction should be seen as extremely beneficial for the shareholders. The financial risk was largely reduced, the company will not have to pay interest to these debt holders anymore, and, most importantly, shareholders will not have to fear the potential share dilution that this convertible securities represented. The share price reacted sharply to this news, as it went from approximately $0.008 to $0.022 in just a few days.The letter from the CEOOn April 11, 2017, shareholders received a letter from the CEO, wherein the business executive explained the clearing of the convertible debt as well as other events regarding the regular operations of the company. From the letter, the team would like to note several key milestones in the distribution plan of the company's products. First of all, the creation of the website www.painreliefmeds.com that will help market and sell the initial pain relief products.SourceAdditionally, the company noted that it continues to develop its network of direct distributors. In the last quarter, several new vendors in the Western Pennsylvania area with outlets in Ohio agreed to distribute the pain management products. The company also added that it will continue to pursue similar distribution agreements with large pharmacy chains, such as Rite-Aid, Walgreens or Medicine Shoppe.In the other part of the business, the immunotheray and biologics division, the company communicated that in the last quarter, the company approached several Big Pharma companies trying to obtain a new partner to sell its technology to the market. This is said to be a very important milestone for Premier Biomedical, which needs a bigger corporation to start testing on humanized animals and preclinical human volunteers. In addition, it was put out in the press release that the project will need $5-7 million and to 2 – 2½ to complete.ConclusionWe have seen several new developments in the last month. Firstly, the company retired the convertible debt that the company held on the books, reducing the financial risk as well as the risk of dilution for the shareholders. The share price reacted to this news. Additionally, the CEO put out a letter explaining the recent operating milestones achieved by the company in the last quarter. We noted that the increase in the distribution network of the company, as well as the recent efforts to obtain a Big Pharma company as a partner should be seen by shareholders as very beneficial for the long term performance of the stock. Overall, Premier Biomedical is moving in the right direction.We will be updating our subscribers as soon as we know more. For the latest updates on BIEI, sign up below!Disclosure: We have no position in BIEI and have not been compensated for this article.