Marina Biotech, Inc. (OTCMKTS:MRNA) Sails Over $1

After trading in far smaller daily volume over the past few months, yesterday Marina Biotech, Inc. (OTCMKTS:MRNA) suddenly sprang into action with over 570 thousand shares changing hands. The stock put on 11% and sailed to a close of $1.01 per share.

The sudden spike in interest is difficult to explain as there have been no new filings from the company and no PR over the last couple of days. The only discernible trigger for the spike in volume and the price movement was an article published on Seeking Alpha by a writer who is long MRNA and has an obvious interest in pushing the price up. The piece in question calls MRNA ‘grossly undervalued’, compares it to a number of stocks who are trading on the NASDAQ and sets a wildly random price target of $4.50 for MRNA stock.

Investors should decide for themselves what MRNA is worth, based on the company’s progress with its research and therapies as well as the financials last reported:

  • $0.9 million in cash
  • $6.2 million in current liabilities
  • zero revenues for Jan-Sep 2014
  • $18.2 million in net loss for Jan-Sep 2014

The report states that the share purchase agreement MRNA signed in March 2014 will provide sufficient funding for the company to fund its operations through May 2015. The said agreement included the sale of preferred shares worth $6 million, with each share convertible into common stock at $0.75 per share. Throughout the month of March MRNA was trading significantly higher than the conversion price.

The agreement also includes warrants for the purchase of up to 6 million common shares that are once again valued at $0.75 – a raw deal for shareholders who were offered shares on the open market at a much higher price at the time of the agreement and can now once again buy MRNA far above that price.

Whether MRNA has what it takes to maintain a price of over $1 per share remains to be seen.

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