Amarantus Bioscience Holdings, Inc. (OTCMKTS:AMBS) Drops Again

After Amarantus Bioscience Holdings, Inc. (OTCMKTS:AMBS) announced on September 9 that they have finalized the issuing and sale of warrants for an aggregate of $1.5 million in principal amount of 8% original issue discount senior convertible debneture and have already had a stock purchase warrant for over 38 million shares.

This is term led to a drop in their price after it became evident that the company is going to finance its operations by issuing and selling stock, which will in term lead to dilution. As we mentioned in our previous article about AMBS the company has 1 billion shares authorized, with 460 million currently outstanding, which is rather scary.

This is the probable reason for the dip in price that AMBS‘s stock recorded in yesterday’s trade session. The ticker lost a total of 8.97% of its value yesterday on double its average volume of traded stock. The total amount of shares that had switched hands in the end of the day came at 11 million and helped generate a trade value of $868 thousand.

Today’s session started well at first, but the huge amount of stock pushed the price a further 5% down and it currently sits at $0.0675. The volume promises to be similar to yesterday’s with 2.7 million traded shares to this moment and a trade value nearing $200 thousand.

At the moment people that have invested in the company are rather scared and are trying to shed their holding, before the stock gets diluted. There is also the fear of the dumping of the 38 million shares of shares purcashed with a common stock purchase warrant, which may cause the price to plummet.

All in all, until AMBS come forth with some good news about the development of their products there is nothing in the way of their stock’s descent, so be sure to do a lot of due diligence and weigh out the risks if you have any ideas of investing in this particular OTC company.

Another medical stock had a bad session yesterday. We are speaking of InVivo Therapeutics Holdincs Corp. (OTCBB:NVIV) who fell 23% after a promising 5 day run. Joining the club of medical stocks heading down is NanoViricides, Inc. (OTCBB:NNVCD) who dropped 27% on a high volume of traded stock.