SOHM Inc (OTCMKTS:SHMN) Shares Skyrocket on ICO Announcement

SOHM Inc (OTCMKTS:SHMN) just exploded higher in recent days. This is a deep sub-penny play that has been doing nothing for well over two years. So, why has this quietly unknown stock suddenly blasted off for 1200% on record volume over the past 6 days? We think it likely has mostly has to do with this: “SOHM, Inc., (PINKSHEETS: SHMN) To enter ico bitcoin market. Updates to follow within a couple of days.”

That was the content of a press release put out by the company on Tuesday. We are firmly in the crazy days of the cryptocurrency bull mania. When “CryptoKitties” is making market-moving headlines, you know the days are numbered for this phenomenon. But while the crazy days last, we are going to see stories like this: the mere mention of an ICO can take a quiet sub-penny play like SHMN and blast it off 1200%.

SOHM Inc (OTCMKTS:SHMN) trumpets itself as a generic pharmaceutical manufacturer that produces and markets generic drugs covering all major treatment categories. Global headquarters is located in North America with manufacturing sites in India. Generic pharmaceuticals are exported globally with a focus on distribution in emerging markets in Africa, Latin America, and Southeast Asia.

SOHM, Inc. develops, manufactures, markets, and distributes generic and private label pharmaceutical products in the United States. It offers analgesics, antibiotics, anti-cold, and anti-inflammatory drugs, as well as over-the-counter, cosmeceuticals, and nutraceutical products. The company also exports its products. SOHM, Inc. was founded in 2005 and is based in Corona, California.

According to company materials, “SOHM, Inc., is a growing generic pharmaceutical manufacturing and marketing company with a global presence and marketing plan that assure continuous growth. SOHM manufacturing and marketing target the rapidly growing healthcare segments such as Nutraceuticals, Cosmeceuticals, and other major therapeutic segments. SOHM is headquartered in North America with manufacturing in India as well as strategic alliance with manufacturing facility in USA. Although SOHM’s generic pharmaceuticals are exported globally and was introduced to the USA in early 2013, SOHM continues its focus on distribution to emerging markets in Africa, Latin America, and Southeast Asia along with USA.”

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As noted above, shares of the stock broke out over recent days, likely pushed by fervor from insiders and outsiders as the company announces its intention to enter the ICO market. However, we would also note that the company made an additional announcement on the same day: a relaunch of its flagship skincare product FōHM by SOHM, a rejuvenating, cleansing, and clarifying facial foam powered by SOHM’s proprietary formula Salic2.

According to the release, “this product was launched at an “after Oscar Party” in 2013 for the US market and had good market response however due to unavoidable circumstances, SOHM was not able to fully capitalize on its momentum.”

FōHM by SOHM is a foaming facial cleanser and clarifier powered by Salic2™—SOHM’s propriety salicylic acid formulation. Originally, within the South Asian markets, this product was available only from dermatologists and doctors.

That said, we would imagine that the dramatic rise in shares is likely more a function of the company’s ICO pivot than its push back into the skincare space.

We’ve witnessed 1200% tacked on to share pricing for the company in the past month, a rally that has pushed up against longer standing distributive pressure in the stock. Market participants may want to pay attention to this stock. SHMN has a track record that includes a number of dramatic bounces. Furthermore, the name has benefitted from a jump in recent trading volume to the tune of exceeding 640% above the average volume levels in play in this stock over the longer term.

Now commanding a market cap of $1.7M, SHMN has virtually no cash on the books, which compares with about $1.5M in total current liabilities. The company has pulled in about $291K in total TTM revs. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $SHMN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $SHMN, either long or short, and we have not been compensated for this article.