OncoSec Medical Inc (OTCMKTS:ONCS) With Another Correction
September wasn’t the greatest month for OncoSec Medical Inc (OTCMKTS:ONCS)’s share price. It started well enough when a couple of really exciting sessions sent the ticker beyond the $0.30 per share barrier, but it seems that the pressure got too much and, soon after, it was pretty much back to square one. September 16 brought the news of a new public offering and although ONCS were about to receive a $12 million cash injection as a part of the deal, the dilution caused by the 47 million shares that got issued proved to be too scary for some investors. All the selling resulted in nearly a fifth of the value gone after just six and a half hours of trading. Shareholders were hoping for a more steady performance in October as well as some good news, but the chart shows that the ticker is not quite ready to deliver.
The beginning of the month was, once again, positive and quite a lot of trading volume did bring a modest price increase. Instead of continuing up the chart, however, the ticker dropped back down and did what it has been doing for the last couple of months. Last week, ONCS attempted another run and it even managed to reach beyond the $0.30 per share barrier but a correction yesterday brought it back down. The stock performance is not perfect as you can see, but what about the news coming out of ONCS‘ HQ?
That’s a different story. Our latest article came out less than a month ago and since then, the management team has made a total of six announcements. Most of the press releases talk about ONCS‘ participation in various medical conferences and blog posts coming from the company CEO, but they did say on October 8 that the combination study that they’ve been conducting is showing some positive preliminary results. On September 24, they also summarized their development strategy and although it doesn’t give us any new information, it is a good reference point for investors to check every now and then and see if everything is going according to plan.
The most important event from the last twenty-nine days, however, is the 10-K covering the twelve months that ended on July 31. It was published on September 27 and before we delve into the details, here’s a summary of the most important figures:
- cash: $4.9 million
- current assets: $5.1 million
- current liabilities: $1.7 million
- no revenue
- annual net loss: $7.1 million
At first glance, you might say that they have used quite a lot of cash (back on April 30, they had $7.3 million) but, as you might have guessed, the September public offering means that they currently have enough money to sustain themselves. A definite plus point is the reduction in the current portion of the liabilities. Quarter-over-quarter, they have managed to slash around 30% of the debt and while negative working capital has never been that much of an issue for ONCS, having one less thing to worry about is definitely a good thing.
Yet, the stock movement remains unpredictable. You can see that there are quite a lot of sessions like the one yesterday when the ticker simply snaps into a fall with little or no warning and this, in turn, means that some investors are hitting the panic button. The lack of a marketable product means that speculation is a lot and, as evident from the chart at the beginning of the article, leads to a rather erratic performance.
Arch Therapeutics Inc (OTCBB:ARTH) is another such venture and if you are a frequent visitor of our website, you know that the promises of a great product and a bright future, could also open the floodgates for the paid pumpers. The campaign for ARTH started back in July and it has had an absolutely devastating effect on the price (78% lost in just over three months). You should also probably keep in mind that ONCS‘ Chairman of the Board, Dr. Avtar Dhillon, holds the same position at Arch Therapeutics.