Cellceutix Corp (OTCMKTS:CTIX) Backtracking
Cellceutix Corp (OTCMKTS:CTIX) has been going back and forth throughout the entire previous week. It started with a two-day descent, and remained stuck at $3.32 for three sessions with no percentage change for two consecutive days. On Friday the stock finished the week by gaining back the unimpressive 0.90% it had lost on Tuesday, and closed the week where it started it – at $3.35. During Friday’s session it racked up a volume of 379.6 thousand shares, and an impressive trade value of $1.29 million.
The most recent news on the company comes from a PR issued on Friday. Several hours before the opening bell, CTIX released a PR announcing the appointment of a new COO. The new company member is Dr. James Alexander, whose appointment was approved by the Board of Directors on Oct 24 and was effective as of Oct 27. The PR continues with Dr. Alexander addressing CTIX shareholders. He praises the company’s progress and mentions CTIX‘s future plans regarding some of their drugs. Then the new COO goes on to mention the Form S-3 CTIX filed on Oct 30.
The registration statement would allow the company to raise up to $75 million. Dr. Alexander stated in the PR, the company might not even “exercise the registration”, but he perceives it as “a prudent financial move to have additional cash available to us should a unique opportunity arise”. The doctor believes that the money will help CTIX with future acquisitions or clinical trials. In any case, time will tell whether an “unique opportunity” will arise. As for the clinical trials, the doctor concludes his “shareholder address” by stating a company goal – to “have at least five different clinical trials in progress in 2015”. We will have to wait and see whether that goal will actually be accomplished.
Currently CTIX has a pipeline of three major drugs – Kevetrin, Brilacidin and Prurisol, all of which are in different stages of clinical trials. In its latest annual report, the company disclosed that the drugs under development “are not likely to be commercially available for several years”.
The 10-K also showed working capital deficit, a substantial net loss and, of course, lack of revenues. It is common to see such numbers with development stage pharmaceutical companies, which is probably why the report didn’t discourage CTIX supporters.
A quick look at the posts on investor forums shows that many of the stock’s supporters are hopeful that the filing of the Form S-3 will push the stock “to $4 this week”. Hopefully for investors CTIX will break out of the loop and show some real progress. Investors will do well to familiarize themselves with all the details surrounding CTIX before deciding whether or not to make an investment.
