Propanc Health Group Corp (OTCMKTS:PPCH) reported a summary of recent developments and accomplishments which will direct the company to complete designed objectives in the coming months. The company reported that it had obtained financing of $1.2million of a prospective $4 million financing deal.
The financing deal
Recently, Propanc Heath released a note to an institutional investor in order to raise funds of as much as $4 million. As per the update, if both parties advance, the total deal size will be adequate to support underway and future research and development plans resulting in the commencement of human studies for Propanc’s lead drug, PRP. All the information and details pertaining to the financing deal are available in Form 8-K filed submitted the SEC on September 29.
Propanc management continues to work meticulously with its team of advisors and has carefully evaluated all financing agreements presented to see if any investor supports its plans for up listing on a reputed national exchange. If the existing institutional investor determines not to advance with the subsequent financing deal, management believes that Propanc continues to remain an attractive opportunity for investors. It will find the necessary support sometime next year.
The expert view
James Nathanielsz, the CEO said that they are extremely delighted with the progress made with recent R&D and financing activities. The significant, incremental, but essential measures taken this year, has enabled them to boost confidence and believe that Propanc is on the right pathway to attain long-term commercial success.
Propanc intends to fast track the progress of proenzyme based oncology products into clinical studies for pancreatic and colorectal tumors, initially. As per the Global Analyst Reports, the global industry for colorectal cancer is projected to touch $8.8 billion by 2020 and the worldwide pancreatic cancer market is expected to surpass $1.2 billion by 2015.
Propanc Health Group Corp (OTCMKTS:PPCH) ended the last trading session with a solid gain of 17.37% but the structure of the daily candle didn’t inspire the bulls much. The stock had opened with a huge gap up and despite the EOD gains made, it failed to close above the opening price. The volume of 11 million was almost double the daily average of 5 million, reflecting the intense activity for the day. The stock has just bounced back very sharply from a major support area but it is highly overstretched at this point and the intraday correction may be the first signal for a bigger consolidation.