Investors Have Not Give Up Hope on TapImmune Inc. (OTCMKTS:TPIV)
TapImmune Inc. (OTCMKTS:TPIV) has been a wild ride over the last twelve months or so. It hasn’t necessarily been an enjoyable one, though.
A year ago, the ticker was sitting at $2.20 per share, but it was sliding towards the bottom at a rather rapid rate, and just seven months later, it found itself at its 52-week low of $0.12. In June, TPIV put on quite a show when it ran from less than $0.20 all the way to more than $1.50, but it once again lost momentum and after a couple of days of selling, it slipped back in sub-dollar territory.
Some of the people who went through 2014’s devastating drop might be having a deja vu moment, but others will say that things are quite a bit different now. And indeed, there are a few dissimilarities.
TPIV wasn’t particularly active on the PR front twelve months ago, but right now, the high volumes it’s experiencing are caused by the promising results of the Phase I clinical trials which were announced at the end of May. The members of the management team are absolutely ecstatic with the data and they seem more confident than ever that they can get the Phase II trials started on time.
There are some differences in the financial reports as well. If you take a look at the statements from about a year ago, you’ll notice that quite a lot of toxic notes were present in TPIV‘s books back then. Clearing them caused quite a lot of dilution, but on the bright side, the debt is now gone which, we’re pretty sure, is putting a smile on the faces of many shareholders.
So, plenty of differences between TPIV of 2014 and TPIV of today. And you can see that on the chart as well. Indeed, the ticker does appear to be a bit reluctant to emerge above the $1 per share mark, but it’s also avoiding a more serious drop. After it slipped on Monday, TPIV bounced a little during yesterday’s session and it finished the day with a price of $0.97.
The volumes are quite healthy and there’s no shortage of supporters on the message boards. That said, there are a few problems.
Removing all the convertible notes from the books was a relief for the shareholders, but it left the management team looking for alternative ways to finance the company’s operations. They found a few institutional investors who agreed to purchase some equity from TPIV and during the first quarter, they sold a grand total of 12,320,000 investment units at $0.20 apiece, with each unit comprising of one common share and several warrants exercisable at different prices which initially ranged from $0.75 to $1.50.
At the beginning of last month, however, just as the stock was preparing itself for an explosive run, TPIV amended the warrants’ terms and allowed the warrant holders to buy shares at prices ranging from $0.10 to $0.50.
Shortly after the amendment, some of the warrant holders exercised 5 million warrants at $0.50 apiece which, in the management team’s words, gives the company the required capital to start the Phase II trials as soon as possible. The exercise of warrants, however, also gives the warrant holders a rather healthy profit opportunity and if they decide to take it, they could put quite a lot of pressure on the retail investors who are chasing the stock at these relatively lofty levels.