Cellceutix Corp (OTCMKTS:CTIX) Surging On PR
Cellceutix Corp (OTCMKTS:CTIX) has experienced four consecutive positive sessions and has increased its market price by approximately 11%. After yesterday’s gain of 0.63% on a volume of 386 thousand shares, the stock closed at $3.20.
The most recent news on the company comes from a press release CTIX issued yesterday several hours before the opening bell. The PR disclosed that December will be a “momentous month” for the company.
The release starts by announcing that the ninth cohort’s Phase 1 Kevetrin clinical trials “for advanced solid tumors” have ended. Then states that in the “first week of December” the collected safety data will be reviewed, but the announcements for the following month don’t stop there.
In December the tenth cohort will undergo Kevetrin trials. The company and the University of Bologna will meet in order to discuss “the Phase 1/2 trial of Kevetrin in combination with cytarabine in patients with Acute Myelogenous Leukemia”. The Phase 2 clinical trial of Brilacidin-OM for oral mucositis, is expected to begin in the second week of the month. Also, this month CTIX has a meeting with the FDA to discuss the advancement of the clinical development of two of its major drugs. The company will also be attending a conference from Dec 4 to Dec 6, taking place in Florida. With so much announcements, it’s no wonder the PR brought positive attention to the stock.
On Oct 30 the company filed a Form S-3, which would allow it to raise up to $75 million in equity and/or debt financing. Then on Nov 10, the company turned in a Form S-3 Amendmend, as a pre-effective Amendment No.1 to the form. On Nov 19 the SEC gave the registration statement a green light, as there is now an Effect found on the company’s OTC profile.
On Nov 10, the company also filed its latest quarterly report, which covered the period ended Sept 30. For these three months, CTIX reported:
- cash: $7 million
- current assets: $7.2 million
- current liabilities: $7.9 million
- no revenue
- loss from operations: $4.3 million
Quarter over quarter, there is a definite improvement. Cash has grown, while the net loss and the working capital deficit have decreased, and considering that this is a development stage company, the lack of revenues is hardly surprising. However, even though the numbers may seem impressive, potential investors shouldn’t ignore the fact that the products CTIX is developing “are not likely to be commercially available for several years, if ever”.
A red flag that popped up in the quarterly is the Stock Purchase Agreement CTIX has with Aspire Capital. The company has a history with Aspire, which began on Oct 25, 2013. Since then, up to Sept 30, 2014, CTIX has printed a total of 5.9 million shares to Aspire for gross proceeds of nearly $10.4 million. But the share printing doesn’t stop there, as from Oct 1 to Oct 27, in less than a month, 800 thousand shares were issued for proceeds of $1.9 million.
Potential investors should do their own due diligence before deciding whether or not to invest in the stock, and never gamble with money they cannot afford to lose.
