OncoSec Medical Inc (OTCMKTS:ONCS) Regains Previously Lost Positions

Yesterday OncoSec Medical Inc (OTCMKTS:ONCS) managed to recover what it had previously lost in the three consecutive negative sessions. By the time of the closing bell, the stock was up almost 6% on a volume of 579.5 thousand shares. ONCS closed at $0.5395.

Since the start of the month ONCS has been issuing PRs on a regular basis. The latest one was released today, at 6.02 AM. It disclosed that the company will take part and present at a conference taking place in New York City. The 2014 Stifel Healthcare Conference will be held from Nov 18 to Nov 19, and on Nov 19 the President and CEO, Punit Dhillon will present “a corporate overview of the Company”.

Other recent company news come from the two filings ONCS turned in yesterday – a Form 3 and a Form 4. Both forms have to do with Mai Hope Le, ONCS‘s Chief Medical Officer. The first states that she owns no securities in the company, and the latter that she has acquired 1.7 million options to purchase common stock with an exercise exercise price of $0.52. The transaction code listed is A, which stands for “grant, award, or other acquisition”. As we found out from an 8-K report, the stock option award was granted to the CMO “under the Company’s Amended and Restated 2011 Stock Incentive Plan“.

On Monday the company issued a press release announcing that it has been granted with funding, which it will use for the study of “a novel gene therapy approach for the treatment of malignant melanoma”. The grant was provided by the Virginia Biosciences Health Research Corporation, and was in the amount of $585 thousand. This is the second time in less than a month that the company has disclosed news of receiving funding. The first announcement was made on Oct 27, and it was about ONCS receiving a Phase I Small Business Innovation Research grant. The release also disclosed that the grant could bring ONCS additional funding of up to $1 million, depending on the results of the Phase I trials.

The other recent PRs issued by ONCS have to do with events at which the company will be presenting. As for the recent filings, on Nov 10 ONCS turned in a Post-Effective Amendment to FORM S-1 on FORM S-3, and on Oct 10 the company released its annual report. The 10-K covered the fiscal year ended July 31 and showed:

  • cash: $37.8 million
  • current assets: $38.3 million
  • current liabilities: $1.3 million
  • no revenue
  • loss from operations: $11.9 million

For a development stage company, these are some impressive numbers. Even though the current liabilities and the reported loss have increased quarter over quarter, so have the cash and working capital. In fact, with the current cash amount the company will be able to continue its operations for at least another 12 months. ONCS uses equity financing to replenish its funds and doesn’t resort to toxic funding. After closing a Direct Public Offer on June 6, when it last turned to equity financing, ONCS ended up with around $15 million in net proceeds.

Do your own research before deciding whether or not to make an investment, and never gamble with money you cannot afford to lose.

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