TapImmune Inc. (OTCMKTS:TPIV) Corrects

Yesterday the stock of TapImmune Inc. (OTCMKTS:TPIV) corrected by nearly 5% on an above-average volume of 614 thousand traded shares. At the end of the session the ticker was sitting at $0.61 per share. It seems that the stock  continues to be quite volatile jumping up and down the chart. Let’s see if there is an explanation for this behaviour.

Last month TPIV filed its annual report and it contained the following financial results for 2015:

• $6.58 million cash
• $6.645 million total current assets
• $28 million total current liabilities
• ZERO revenues
• $34 million net loss

It should be noted that the staggering amount of liabilities is mostly due to a $26.5 million derivative liability in warrants while over $27.8 million of the net loss was caused by changes in the fair value of derivative liabilities. The lack of revenue is also understandable having in mind that TPIV is developing peptide and gene-based immunotherapeutics and vaccines for the treatment of cancer and metastatic disease. The company has plans to initiate several Phase II clinical trials for its TPIV 200 cancer vaccine in 2016. On April 21 TPIV announced that in the second quarter of the year a Phase II study of TPIV 200 in combination with Astra Zeneca (NYSE:AZN)’s durvalumab (MEDI4736) should commence.

TPIV remains a pennystock, though, and as such there are some rather serious red flags that must be taken into consideration. Last year, in order to raise some much needed funds, TPIV performed several private placements, during which it sold more than 12 million shares at just $0.2 per share. As part of the same private placements the company also issued a vast amount of warrants. The initial exercise prices of these warrants were lowered significantly and as a result 4.82 million Series A warrants got exercised at $0.10, 24.6 million Series B warrants were exercised at $0.20, and 7.62 million Series C warrants were exercised at $0.50. As a whole the outstanding shares of the company ballooned from 20 million at the start of 2015 to over 70 million by the end of the year.

In early trading today TPIV is sitting around 1.5% in the green at $0.619.