Premier Biomedical Inc (OTCMKTS:BIEI) Looking To Make A Comeback

In our last piece about Premier Biomedical Inc (OTCMKTS:BIEI), we explained that the company had retired the convertible debt held on the books. The market appreciated this move, because the financial risk of the company was drastically reduced. Additionally, we noted a letter from the CEO, wherein the latest operating milestones achieved by the company were noted. The market also appreciated this news and the share price jumped. Just after we published the article, investors decided to take profits and the share price declined a bit. Have a look:SourceRecent DevelopmentsOn May 18, 2017, the company noted that its Pain Management Solutions ‘CBD Hemp Oil Skin Patch’ had been assessed by a Chronic Illness Blogger as well as fibromyalgia sufferer. Investors can visit the whole review here, but for those investors who don't have time to read, the contents were very well resumed by William A. Hartman, President and CEO of BIEI:

“This blogger’s experiences are typical for our customers. No initial “WOW factor”- just steadily growing relief that can sneak up on you. Her review bolsters our resolve to continue our mission to develop and introduce of an entire array of pain relieving products in order to bring relief to those suffering from chronic pain" Source

Additionally, Ness, author of the blog, explained the following:

“It is super easy to use, natural, pure and allergy free product so I am sure it would benefit many people looking for a natural method of controlling symptoms without the side effects of conventional medicine.” Source

In our opinion, the company's communication team did a very good job by giving the product to a first user. Other patients may also read the blog and would be willing to use the product now that another trustworthy person has tried it out. At the end of the day, the company is working on brand equity, which means future revenue. As far as the revenues are concerned, the company released its annual report on May 8, 2017, and its quarterly earnings on May 22, 2017. We checked the share price reaction to both reports, but we did not see any large movement the following day. Have a look at it:SourceIn any case, we assessed the financial statement of the firm to check whether the market had not passed anything relevant. Like before, the company is still not making any revenue. It is investing large sums in research and development, general and administrative expenses, and in interest expenses. Have a look; these numbers are from the annual report:

• Research and development: $113,862
• General and administrative: $191,379
• Professional fees: $332,650
• Interest expense: $817,423

Thus, the company is still in the development stage and market participants are buying the company, as they believe that the CBD Hemp products will bring revenues in the future. As we mentioned in many of our articles, the new regulatory environment in the United States and Canada, which now permits medical marijuana products to be sold, may create a demand that only Premier Biomedical can deliver. In our opinion, that is the rationale, which justifies an investment here.Offering of convertible securitiesIn our first article, we mentioned that the convertible debt reduction was very positive since the risk of dilution had been reduced:

"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." Source

However, in May 18, we noted an SEC filing, wherein the company was offering warrants and stock. Warrants, the same way as convertible debt, are convertible into stock and may dilute previous shareholders. The market did not react to this news, as the amount of warrants sold had not been announced yet. This text was part of the warrants’ offering:

"We are registering 147,000,000 shares of our common stock issued, and that may be issued pursuant to purchase agreements and warrants, to the selling shareholder named in this registration statement." Source

ConclusionIn this article, we assessed the last news released by the company, which did not have a market reaction, but have some value for market participants. First, the company's products were tried out by a fibromyalgia sufferer, who talked very positively about the experience. Furthermore, the company released its first quarterly report for 2017, and its 2016 annual report. We did not see any significant change on the books. Finally, we are glad that the company retired its stock warrants’ offering, as it would have increased the risk of dilution. Like before, try to follow the company closely, as it may release good news very soon that may really affect the share price. 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.