Arch Therapeutics Inc. (OTCBB:ARTH) Is Still Hesitant
Arch Therapeutics Inc. (OTCBB:ARTH) barely moved in Friday’s session – and it doesn’t look like today will be any different in that respect.
ARTH hasn’t really seen a lot of trading since the crash that followed the filing of its latest financial report. Dollar volumes have been meager ever since that time, since investors were not too impressed with the company, even though its financial numbers weren’t half bad for what it is:
- Cash – $3.27 million
- Total Assets – $3.31 million
- Total current liabilities – $1.89 million
- NO REVENUES
- Net Loss – $1.39 million
As the company’s report clearly shows, ARTH obviously has money on hand to finance its research, which is more than many others in the same branch can claim. However, it is still light years away from bringing a product on the market and even farther away removed from commercial success – which is not exactly a state of affairs that investors find particularly appealing, because it requires them to be patient and is not really all that exciting.
Further, there is a serious drawback of waiting while stocked up on OTC Markets pharmaceutical stocks. Investors that do so usually feel the full force of the dilution said companies use to fund their very lengthy and expensive research:
- As of February 6, 2015 ARTH had 76 million shares of common stock outstanding.
- As of August 5, 2015 ARTH had 100 million shares of common stock outstanding.
The latest private placement at the end of June saw ARTH sell 14.3 MILLION units consisting of 1 share and 1 warrant for the purchase of 1 common share with an exercise price of $0.25.
The lack of meaningful developments surrounding ARTH is probably why it has been this quiet lately, and there’s no reason to believe that this state of affairs will change before the company’s situation changes as well.
