Mountain Valley MD Holdings Inc MVMDF

RE:interesting short report. likely the reason for the fall

[mingzhu]

main points of the short

• Mountain Valley has pivoted from one hype-filled sector to another – we believe its COVID effort will follow the same disastrous outcome as its failed cannabis endeavor
• MVMD’s most tangible progress in cannabis was a series of investments that were written off completely resulting in cumulative losses of over $10m
• MVMD’s lead scientist has peddled the same delivery technology for years across multiple product formats without success. MVMD claims the same technology can revolutionize medicine.
• We find no evidence of MVMD’s lead scientist completing scientific training or a science-based degree (or any degree); no employees have pharmaceutical related experience
• Management touts a TAM in the tens of billions, yet recently signed a tiny $250k licensing agreement with an obscure mushroom counterparty
• The Chief Medical Officer of this mushroom company was forced to resign from taxpayer-funded clinic after an audit revealed he embezzled over $2m
• MVMD recently halted its stock overnight to announce animal trials and a partner in Bangladesh. We reveal the partner is primarily a garment manufacturer located in same building as an elementary school (we have photos)
• MVMD’s prolific stock promotion includes dozens of ads portrayed as unbiased interviews with known stock promoters
• We interview two drug delivery experts – both extremely skeptical of MVMD and “struggle to see any value”
• MVMD has only completed one pre-clinical study – in canines. Our experts are baffled Mountain Valley would hype the results, calling them vague and unremarkable
• MVMD claims its products are “unprecedented”, yet it owns only two relevant patents (with the same title) of questionable value
• MVMD’s flagship product candidate is a modified form of an unapproved drug with data criticized by most of the medical community including National Institutes of Health, Infectious Disease Society of America and Merck
• Prior CFO founded a cannabis company whose stock declined 80% since IPO and just received a notice of default from debt holders
• Three months ago, MVMD raised cash at 80% below current levels with warrants. The stock is up 6x since despite no meaningful news
• MVMD quietly equitized $0.5m of debt at $0.07c/unit on the same day it announced an equity financing at $0.22/unit. Neither the debt nor the counterparty was disclosed