So far the share price of Arch Therapeutics Inc (OTCBB:ARTH) has stringed together six successive sessions of strong gains. Moreover, the positive momentum has been increasing significantly with each session.
In yesterday’s session, the stock of Arch Therapeutics jumped more than 12% to close the trading session at $0.360. The last time ARTH stock traded at such levels was back in last September. While the recent performance recorded by the company is indeed remarkable, investors should know that this performance is not supported by a new SEC filing or press release.
Since last month, Arch Therapeutics have released numerous encouraging press releases and the accumulation of positive buzz might have eventually led investors to display strong support for the stock. In fact, the last month led to the start of patient registration and treatment in the firm’s first clinical study in Western Europe. Moreover, Arch Therapeutics’ AC5 Surgical Hemostatic Device was assigned an ISO quality certification. It also received favorable results from a comprehensive panel of preclinical biocompatibility studies.
On March 22, 2015 the company posted positive results from a skin exposure test that lasted for 21 days. If everything goes as per plan, Arch Therapeutics intends to submit a CE mark application for its AC5 later this summer.
On the financial performance, Arch Therapeutics latest report disclosed figures that are not so bad. For the quarter closed December 2015, the company reported cash of $2.81 million. The total assets came at $2.87 million while total current liabilities amounted to $748,000. Arch reported revenue of $0 on net loss of $1.15 million.
Getting thrilled and forgetting that Arch Therapeutics is a penny stock firm is not a wise measure. Last year, the company raised more than $3 million via a private placement of units at $0.22 each. It was not enough as going by the company’s latest update, they will need to source additional outside funding by June 2016.