The stock price of Cellceutix Corp (OTCMKTS:CTIX) managed to cross above the $3.50 mark earlier in this year. However, in last couple of months, the stock has eroded almost all its gains and continues to slide down on the chart. In last trading session, CTIX declined more than 4% to close the trading session at $1.36. The decline came at a share volume of 428,057 compared to average share volume of 200,208.
The reason for this sharp decline was an article published on a popular investor site that alleged Cellceutix’s management of making misleading and false statements. Since then several law firms have filed class action lawsuits against the company. Despite the fact that Cellceutix has extensive product line in clinical trials and promising financials this recent problem can further drag the price down.
As per the latest report, the company reported cash of $8.41 million. The current assets came at $8.76 million while current liabilities were $7.29 million. Cellceutix reported revenue of $0 and annual net loss was $13.14 million. The financial report highlights decent figures and the market cap of nearly $160 million is usual for an OTC listed firm. Earlier in month, the company did attempt to enhance its market cap with no evident success.
The future ahead
Cellceutix is trying to cope up with all the recent controversies surrounding the company. In the process, it has engaged the Ashcroft Law Firm to guide them in the controversial matter. The management is stating that filed cases are based solely on information detailed in the posted article on the website and there exists no truth in the allegations. However, the management assurance has failed to ignite the confidence in the investors.
Cellceutix has established research collaborations with leading research institutions in Europe and the U.S., including Beth Israel Deaconess Medical Center, MD Anderson Cancer Center, the University of Bologna and Fox Chase Chemical Diversity Center.
The Cellceutix Corp (OTCMKTS:CTIX) bears remained in form control of the stock as it ended the last trading session with a major loss of 4.23%. The volume of the day at 428,000 was higher than the daily average of 245,000 though none of the numbers were noteworthy. This last phase of the downtrend has taken a triangular shape and displays a contraction of volatility as the price area covered in the last 2 months has been very small. This corrective phase may be coming to an end, which would be signaled by a breakout.