Following on last week’s gains, the stock price of TapImmune Inc. (OTCMKTS:TPIV) jumped more than 12% yesterday and closed the trading session at $0.715. The gains came at a share volume of 832,413 compared to average share volume of 531,765. With the last day’s gains, the market capitalization of TPIV surged to $50.76 million.
TapImmune offers investors with a fascinating instance of duality, and it is the reason the stock is so unstable most of the time. The pharmaceutical firm is one of the rare OTC marketplace firms that get things completed. Unlike so many other firms in the OTC markets pharmaceutical segment, TapImmune has some strong scientific developments under its belt. It is also into clearing phase in one of the clinical studies for two of its offerings, and it is something that only few other firms in the same tier of the OTC platform can achieve.
As it is a known fact that medical research is an expensive affair, and last time it was noted that TapImmune had $6 million in funds to support its operations for a while yet. So far so good, however it is the only one aspect that have been analyzed so far. The second aspect of the story is not so impressive. It is suffice to mention that the investor value that the firm’s scientific developments and measures toward commercial success bring, immediately is overpowered by its affinity to release toxic warrants and promissory notes for buying common shares.
A considerable part of $6 million of funds was acquired by the issuance of convertibles notes that can be converted into shares at low prices. In fact, 44 million shares of the total common stock outstanding of 64 million shares as of November 2015 were released earlier in 2015. The company offered nearly 12.3 million as part of its two private placements with the shares priced at just $0.2 per share.