TapImmune Inc. (OTCMKTS:TPIV) regained momentum on Monday after a brief pause during the end of the last week. The company’s stock recorded another double-digit rally as it inched up by more than 10% to close the session at $1.15. This is the company’s second double-digit session after Thursday when it announced about the injection of fresh capital.
Fresh capital injection
As per last week’s press release, TapImmune Inc.(OTCMKTS:TPIV) informed shareholders that it received an “immediate infusion” of as much as $2.5 million from Eastern Capital Limited, which is also the company’s largest institutional investor. The capital infusion happened as a result of exercise of 5 million warrants of Series C-1, while an equal number of common shares of TapImmune Inc.(OTCMKTS:TPIV) were purchased at a price of $0.50 per share.
The good and bad
As a result of exercise of these warrants, TapImmune Inc. (OTCMKTS:TPIV) amassed a sum of $2.5 million over and above its cash reserve of $1.45 million, as noted in its report for the period ended on March 31, 2015. The company said that the funds received through the exercise of warrants will be employed towards progressing on Phase II trials of the breast cancer. The news pleased investors, who rushed to buy the company’s stock, showing their vote of confidence.
Moreover, another positive aspect related to the purchase of the said 5,000,000 shares of the company is that they are unregistered, barring the buyer to sell it immediately. Still, Eastern Capital Limited holds a great portion of immediately exercisable warrants, which can push the stock price of the TapImmune Inc. (OTCMKTS:TPIV) downward.
At the same time, the stock price of TapImmune Inc. (OTCMKTS:TPIV) is in overbought territory and thus, can correct at any point of time. Furthermore, the company also has a tremendous amount of outstanding shares to the tune of 38.6 million, which can be a concerning factor for shareholders going forward.