Accurexa Inc (OTCBB:ACXA) Topples Over
After a couple of explosive sessions and a stomach-churning 634% in gains, Accurexa Inc (OTCBB:ACXA) crashed hard yesterday. Nearly 35% of the value disappeared in a matter of just six and a half hours and the closing bell stopped the ticker at $2.35 per share.
A lot of people expected a correction in light of the amazing run from Friday and Monday, but it’s fair to say that few were ready to see more than a third of the market cap go down the drain in the space of a single session. The worse thing about it is that nobody can say for sure what went wrong.
The initial volume spike occurred at the end of last week when some people apparently got whiff of the news about BranchPoint’s 510(k) submission. The submission itself was officially announced on Monday and the stock truly exploded. No news came out of the company headquarters yesterday, however, and there was absolutely nothing else that could have warranted such a massive sell off.
Earlier today, though, ACXA did come up with some news and this might make things even more interesting. The management team said that some institutional investors led by an unnamed “healthcare dedicated fund” have agreed to invest $2,250,000 into the company. In exchange, they will receive a total of 2,250 preferred shares as well as some warrants. The preferred shares will then be convertible into common ones at a rate of $1.25 apiece.
On the face of it, the news is good. The fresh funding should give ACXA some room to breathe. Getting a medical device through all the regulatory approvals and on to the shelves of a pharmacy near you is a time- and money-consuming process and, as we mentioned in our previous article, the company wasn’t exactly flush with cash at the end of the first quarter. Now, they will have something to work with, but will it be enough to both finance the company’s operations, and sort out the convertible note problem we talked about yesterday? That is for time to tell.
Even if you reckon that with the new funding in place, the future will be bright, you should make sure to stop yourself from chasing the stock. Brokerbank Securities proved to us that even the so-called experts tend to get a bit too excited sometimes.
Brokerbank apparently saw the massive price hike, and yesterday, they decided to issue a short report on the ticker. They weren’t compensated for it, but despite this, they placed a big Buy rating on ACXA. The people who heeded to their advice are probably quite grumpy at the moment because if early trading today is anything to go by, the ticker is in for an even more severe crash. About thirty minutes after the opening bell, ACXA is sitting at just under $1.40 – a whopping 41% in the red.
