Affymax, Inc. (OTCMKTS:AFFY) With First Positive Close Since NASDAQ Delisting
Yesterday Affymax, Inc. (OTCMKTS:AFFY) were able to stop their slide and enjoy a positive market session for a change. As soon as trading started in the morning they surged upwards and managed to maintain the positive trend throughout the day to close at $1.02. The traded volume of 3.8 million shares wasn’t too shabby either.
Six months ago who could have been able to predict what was going to happen with the biomedical company. AFFY were flying high with price per share above $20 and their FDA-approved product starting to generate revenues. Now they have lost 90% of their value, the drug OMONTYS had to be voluntarily recalled from the market in February, 75% of their workforce or around 230 employees had to be laid off.
At the end of May the company was starting to recover with a couple of positive days. Then the letter from NASDAQ put an end to it announcing their intention to delist the company due to the fact that it is a “public shell” with no business operations. Form June 6 AFFY are part of the OTCQB over-the-counter securities.
The company has avoided declaring bankruptcy for now and will be trying to get on their feet. They plan to do that by hiring an experienced restructuring group – The Brenner Group and by terminating the employment of the last 25% of their workers by June 15. The Brenner Group have began taking charge of the company by putting their representative s as CEO, President and CFO so the future of AFFY is in their hands.
The beleaguered company still had substantial financial reserves at the end of the previous quarter mainly $46 million in cash so they shouldn’t be too restricted in their options. The stock carries a lot of risks so caution should be exercised when deciding whether to invest or not.