OncoSec Medical Inc (OTCMKTS:ONCS) Picks Up Where It Left Off
After surging for four consecutive days, on Tuesday OncoSec Medical Inc (OTCMKTS:ONCS) dropped by nearly 6%. However, yesterday the stock managed to recover, as it closed up 6.08% on a volume of 872.3 thousand shares, and is currently sitting at $0.5248.
The company has been quite active on the PR front, issuing press releases on a regular basis. In fact, the one issued yesterday is the most probable reason behind the positive close. It was released hours before the opening bell and disclosed that the company will present new clinical data evaluating ONCS‘s “ImmunoPulse immunotherapy in patients with melanoma” at Melanoma Bridge 2014. The event will take place in Italy, at the start of December this year.
The previous PR contained news about the events at which ONCS will be presenting in November. It was issued on Nov 3, hours before the trading session started, and was also most likely responsible for the stock surging that day.
The other recent press release is from Oct 27, and it also caused a price spike. It contained news that ONCS has received a Phase I Small Business Innovation Research grant from the National Institute of Health. The press release also stated that ONCS might be granted additional funding, which could amount to $1 million. This “additional Phase II funding” will be provided by the SBIR program, depending on the outcome of the Phase I trials.
On Oct 10, ONCS filed its latest annual report. The 10-K was for the fiscal year ended July 31 and reported:
- cash: $37.8 million
- current assets: $38.3 million
- current liabilities: $1.3 million
- no revenue
- loss from operations: $11.9 million
The report shows substantial working capital and a considerable cash amount, which will allow the company to continue its operations for at least another 12 months. The impressive cash supply is due to equity financing, which is ONCS‘s preferred way to replenish its funds. In fact, on June 06 the company closed a Direct Public Offer, which brought them net proceeds of about $15 million.
Potential investors should carefully look into the company before making the decision whether or not to invest in its stock.