It’s been downhill for Genspera Inc (OTCMKTS:GNSZ) following the 27.78% stock crash that took place on Wednesday. The drastic event followed a huge stock trade of 2.5 million shares, marking the biggest Genspera share sale in history.
The massive share plunge took the value of the stock lower than it was before it started its latest climb.
The sale involved a dollar volume of about 1.8 million. Investors should have anticipated such a massive scale. It has been described as an opportunity for shareholders to make massive gains having anticipated such a drastic shift.
The share plunge caught the firm at a $2.52 million share volume compared to a monthly share volume average of about 192,024. Using these numbers, it is easy to see why the share sale was so rapid. Investors were quick to dispose of their shares. Before the share sale, there had been a series of news releases that pushed the company’s stock up to $0.9. The overall performance had been exceptional especially for a firm trading OTC stock.
Despite the massive investor hype, Genspera Inc (OTCMKTS:GNSZ) is among the firms that trade low on the OTC stock. During its latest financial report, the company revealed that it has cash and cash equivalents that amount to $121,000 while its liabilities rose to $3.1 million. The firm also posted a quarterly net loss amounting to $1.5 million.
The firm has therefore been operating on a cash deficit and as a result, Genspera sold about 3.5 million shares a few months ago, each at $0.70. The firm currently has about 150 million authorized shares and an outstanding $37 million shares issued out less than five weeks ago. Genspera Inc (OTCMKTS:GNSZ) managed to navigate its position for weeks, but the last session ended in a huge loss of about 27.78%.