On4 Communications Inc (OTCMKTS:ONCI) sentiments have turned sour in the market in the wake of the company announcing plans to reduce the amount of authorized shares. Even though such news most of the time drives stock prices higher, investors seem to have been scooped by the fact that the company is yet to file anything with the State of Delaware.
Large Shareholders Concerns
In a recent press release, the company announced that it was going to reduce authorized shares in the market from 5 billion to 3.75 billion. However, the reduction was only going to happen on the review of the authorized shares in order to ensure shareholders’ interests are taken care off. Given that it is yet to move forward with the proposed reduction speculation on the street is already rife of what could be causing the delay.
A standoff with large shareholders could be one of the reasons why On4 Communications is yet to file for a reduction of the share count. Most of these shareholders could be reluctant to sell their shares, as the same would reduce the amount of shares they can sell in the market in case the stock price rallies. Failure to reach an agreement would essentially make it impossible for the company to forge forward with its proposed plan.
Crashing Stock Price
The standoff has already had a catastrophic impact on the stock price some investors having already incurred up to 50% in losses in their purchase price. Amidst the standoff, the holding company says it is developing; a business model that has the potential to have a disruptive impact on the dental and elderly care industry with the potential of growing more shareholder value. The company says it is currently negotiating with facilities across New York, New Jersey Connecticut and Florida for the initiative.
Meanwhile, On4 Communications Inc (OTCMKTS:ONCI) has confirmed the appointment of Jeffrey Mahl as senior VP of business Development. Mr. Mahl joins the company with vast experience in business development and sales.
EU Grants Pluristem Therapeutics Inc. (NASDAQ:PSTI) $8 Million for Limb Threat Trial
The European Union has awarded Pluristem Therapeutics Inc. (NASDAQ:PSTI) $8 million to cater for Phase III trial of PLX-PAD on the treatment of critical Limb Ischemia. The study, which is a collaborative project, will be carried out by Berlin-based Brandenburg Center for Regenerative Therapies, according to terms of the agreement.
The consortium is also to analyze the drug’s immunological, endocrine and molecular characteristic as part of an effort that seeks to understand the mechanism action of PLX-PAD in CLI.
The $8 million award, which is part of the European Union Horizon 2020 program, comes on the heels of Pluristem Therapeutics Inc. (NASDAQ:PSTI) receiving positive feedback on the trial of PLX-PAD cell for the unmet medical condition. The company was in the process of conducting a Phase III study of the cells in a double-blind randomized Placebo-controlled trial that would have targeted 250 patients.