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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.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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