Are You Not Being Told Something About Small Cap Stocks XCHC, IMUN & RLIA?

Small cap stocks The X-Change Corporation (PINK: XCHC), Immunovative, Inc (PINK: IMUN) and Reliabrand (OTC: RLIA) may have found their way onto your trading screen via your email inbox. And the reason theses small cap stocks found their way into an email may have been thanks to paid promotions or an investor relations campaign. With that in mind, should you get into small cap stocks The X-Change Corporation, Immunovative, Inc and Reliabrand or might there be reasons to not get so excited about them? Here is a closer look:

The X-Change Corporation (PINK: XCHC) Has Just Gotten Into the Cannabis Business

The X-Change Corporation is a US boutique company whose niche is cannabinoid and hemp based products through its Phytiva brand product line from Cannabis Science (PINK: CBIS) through the CBIS European joint venture with Dupetit Natural Products, GmbH. According to various disclosures, transactions of $2k, $5k, $7.5k and $15k have occurred to mention The X-Change Corporation. On Friday, The X-Change Corporation rose 20% to $0.120 for a market cap of $4.32 million. The X-Change Corporation is also up 100% since the start of the year and up 361.5% since early 2009 according to Google Finance.

What’s the Catch with The X-Change Corporation? The X-Change Corporation has suddenly gotten busy issuing press releases, but it’s a December 13th press release that stands out as it was noted that 4C Tech holdings had entered into a purchase agreement with the company to purchase all of the outstanding shares of Guardian Telecom, Inc. in exchange for $3,500,000 and one million shares of the common stock. However, X-Change Corporation was in default of its payments obligations under the purchase agreement ($250,000 as of October 11th and $750,000 as of November 15th) and the purchase agreement was terminated. That same day, it was announced that The X-Change Corporation had acquired both the Cannabis Science "Phytiva" Brand and the Cannabis Science Joint Venture with Dupetit Natural Products, GmbH. Given the sudden change of direction into cannabis, investors might want to wait to see some new and updated financials from The X-Change Corporation.

Immunovative, Inc (PINK: IMUN) Had a Busy Week Last Week

Immunovative, Inc. has been granted an exclusive, worldwide license to commercialize any products covered under the current issued and pending patent application portfolio as well as the rights to any future patent applications of Immunovative Therapies, Ltd.’s, an Israeli biopharmaceutical company that was founded in May 2004 with financial support from the Israel Office of the Chief Scientist. According to disclosures, a transaction or transactions of $12.5k has been paid in the past and recently to mention Immunovative, Inc. in newsletters. On Friday, Immunovative, Inc. fell 17.27% to $0.091 for a market cap of $16.96 million. Immunovative, Inc. is down 20.2% since the start of the year (active trading seems to have begun only in late July) plus the stock is down 31.7% over the past five years according to Yahoo! Finance.

What’s the Catch with Immunovative, Inc.? Last week, Immunovative, Inc. issued a press release to announce it had been featured on the cover of OPPORTUNIST MAGAZINE, a weekly US based publication with a readership base of more than one million; that its CEO would be taking part in the Deal Flow Conference 2012 later in the week; and that a Phase II/III controlled study for a Advanced Metastatic Breast Cancer treatment had been registered ClinicalTrials.gov. Investors should be aware that Immunovative, Inc. has reported no revenues; net losses of $6.25M, $2.81M and $2.94M for the past three fiscal years ending in March; and had $0.78M in cash and short-term investments to cover $0.70M worth of total current liabilities as of the end of September according to financials posted on Google Finance. Given the low cash position, Immunovative, Inc. will probably need to raise more cash very soon and its not clear how that will be done.

Reliabrand (OTC: RLIA) Will Have a Product Launch Early Next Year

Reliabrand is a manufacturer and designer focused on the delivery of BPA-free plastic products for infants to toddlers. ReliaBrand owns and manufactures the Adiri® brand of infant feeding products which it calls the most highly awarded baby bottle in the history of the category with international recognition for its superior medical benefits and revolutionary design. According to disclosures, a transaction or transactions of $10k have occurred for mentions of Reliabrand in various investment newsletters. On Friday, ReliaBrand rose 16% to $0.29 for a market cap of $22.89 million plus the stock is up over 1,000% since earlier this year according to Google Finance. 

What’s the Catch with Reliabrand? In the middle of December, Reliabrand announced that it will begin shipping its new Adiri® NxGen® baby bottles to its initial Official Retail Launch Partners in the first quarter of 2013 in anticipation of its Official second quarter Consumer Launch. That’s good news as while Reliabrand has started producing revenues of $11k (most recent reporting quarter), $10k, $3k and $1k for the past four quarters, those revenues have not been enough to offset net losses of $273k (most recent reporting quarter), $314k, $244k and $135k. Reliabrand also had just $71k in cash to cover $184k in accounts payable. So investors might want to wait and see how the launch goes before getting too excited about Reliabrand.