InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) Takes a Tumble
After five green sessions in a row that helped recover a good portion of the fall InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) took in late August, yesterday the stock caved in and lost 23%, closing at $1.57.
Yesterday’s session was an immediate disaster, with NVIV opening nearly 50 cents below its previous close. Volume was double that of Monday and while the stock recovered a little from a further plunge it took during the morning hours, it closed the day almost a quarter down.
Monday afternoon, after market hours, the company announced it was making changes in its board of directors. Additionally the company’s CFO, Mr. Sean Moran, resigned from his position and his duties will be temporarily be taken up by interim CEO Michael Astrue. The company announced it was not to present at yesterday’s Rodman and Henshaw health conference in New York City.
The news came a relatively short while after previous CEO, Mr. Reynolds, announced his resignation from the top management spot due to “health concerns”. Mr. Reynolds stepped down on August 22 and was also serving as the company’s CFO before Mr. Moran took that spot. Such a serious shuffle in top-level management in a short span of time may have raised a few red flags for some investors.
In addition to the executive personnel changes, the company also announced a considerable delay in the commercial availability of its flagship product – a biopolymer scaffolding for spinal injury patients. The testing procedures will start in early 2014 and each new human trial will be staggered by a 3-month period, further delaying the end of testing.
Even though NVIV was seemingly recovering well from the drop caused by the testing delay news, the added management changes seem to have broken the levee built by the previous five strong sessions. It remains to be seen how NVIV moves from its current position.
Other hot OTC stocks in yesterday’s session include Liquidmetal Technologies, Inc. (OTCBB:LQMT) who closed 13% down on their largest volume for the past month. Nuvilex, Inc. (OTCMKTS:NVLX) had another green day and closed nearly 11% up, prodded along by a number of stock pumps sent out over the last few days.