Cocrystal Pharma Inc Com (NASDAQ:COCP)

The only reason this sucker bounced was because of the Ebola hype (no pun intended, on the "sucker" comment). And no, I am not underemphasizing the risks that come with that deadly disease. But I am making fun of the SPECULATORS who believe a company such as this would ever cash in on a cure or the tertiary products that might assist in the diagnosis, treatment or cure this disease. Headlines such as this have recently brought attention to this firm:

“Cocrystal Pharma Develops Novel Ebola Screening Technology

Cocrystal Pharma, Inc. (OTCBB: COCP), a biotechnology company developing new antiviral therapeutics for human diseases, today reported that it has developed what it believes to be the first high-throughput screening technology for inhibitors of a key essential Ebola virus gene product.”

If the firm has truly developed a screen, great. But given their history, paint me extremely skeptical. I had to go back to a 2011 10-Q but I found this VERY ENLIGHTENING.

“Biozone Pharmaceuticals. Inc. (Formerly Known as International Surf Resorts, Inc.) Notes To Consolidated Financial Statements September 30, 2011 (Unaudited) NOTE 1 - Business Biozone Pharmaceuticals, Inc. (formerly, International Surf Resorts, Inc.; the "Company", "we", "our") was incorporated under the laws of the State of Nevada on December 4, 2006 to operate as an internet-based provider of international surf resorts, camps and guided surf tours (the "Original Business"). On March 1, 2011, we changed our name from International Surf Resorts, Inc.to Biozone Pharmaceuticals, Inc. We anticipate discontinuing our Original Business through the sale of our 55% ownership in ISR de Mexico, S. de R.L. de C.V., a Mexican corporation in consideration for the return and cancellation of approximately 13,948,007 shares of the Company's common stock. Disclosures contained in this Quarterly Report on Form 10-Q are not reflective of such stock cancellation. On May 16, 2011, we acquired substantially all of the assets and assumed all of the liabilities of Aero Pharmaceuticals, Inc. ("Aero") pursuant to an Asset Purchase Agreement dated as of that date. Aero manufactures markets and distributes a line of dermatological products under the trade name of Baker Cummins Dermatologicals (see Note 3). On June 30, 2011, we acquired: (i) 100% of the outstanding common stock of BioZone Laboratories, Inc. ("BioZone Labs") in exchange for 19,266,055 shares of our common stock; (ii) 100% of the outstanding membership interests of Equalan, LLC ("Equalan") and Equachem, LLC ("Equachem") in exchange for 1,027,523 and 385,321 shares of our common stock, respectively; and (iii) 45% of the outstanding membership interests of BetaZone, LLC ("BetaZone") in exchange for 321,101 shares of our common stock. The acquired entities shared substantially common ownership prior to the foregoing acquisition. (We refer to BioZone Labs, Equalan, Equachem and BetaZone, collectively as the "BioZone Lab Group").”

SURF’S UP, DUDE! Guided surf tours? OK, now that’s a first!

One more item I am including and I am calling this pitch done. In 2008 and 2009, this stock was trading at $0.11. In addition, the stock rose to $5 and has subsequently dropped back to sub $0.50. It only began to rise again when the Ebola news reached the newswire.

“On December 19, 2013, Biozone Pharmaceuticals, Inc. issued 12,946,891 shares of common stock to six note holders upon conversion of notes from $0.10 to $0.20 per share. As a result, all amounts due and outstanding under these notes have been satisfied. The securities were issued in reliance upon the exemption provided by Section 3(a)(9) under the Securities Act of 1933.”

So less than a year ago, shares were selling at $0.10 a share yet it looks like they were trading at closer to $0.70 a share. Nice toxic financing, guys. I don’t see a reverse split but I might be missing it in one of the filings. Either way, the amount of dilution within this issue is pretty pathetic. From 37.7MM shares in 2009 to 122.0MM share today. And yes, this is, of course, a reverse merger. If you have time, read the 8-K’s from 2011 – they were being sued and forced to payout settlements to a few different pharma companies. Lots and lots and lots of red flags here. I will most likely be riding this down into the sub-$0.10 range.