CombiMatrix, Corp. (NASDAQ:CBMX) Hopes to Improve Its Cash Reserves
[[tagnumber 0]]Yesterday the share price of CombiMatrix, Corp. (NASDAQ:CBMX) dropped across the 10– day moving average, however, overall the chart suggests the stock could make some gains in the coming session. The company just recently made a change to the terms of some warrants, lowering their exercise price and providing for sooner execution.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]CBMX closed at $1.15 yesterday with a 4.30% decline from the previous close. The trading volume was not spectacular and much lower than the average number of traded shares for the illiquid stock. Technically, the chart seems in a bullish position for today, yet if the low trading interest remains CBMX could rather slump further below the moving averages.[[tagnumber 1]] [[tagnumber 0]]The company provides DNA–based clinical diagnostic testing services for prenatal and postnatal genetic disorders and operates through a subsidiary. The latest press release came out earlier this month to promote CBMX follow–up testing procedures used to confirm or rule out various genetic failures indicated by initial non–invasive prenatal testing. The stock continued the downtrend, however, and the current trading range is the lowest for at least three years.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 11]][[tagnumber 12]][[tagnumber 1]] [[tagnumber 0]]CBMX has some revenue but that is not enough to sustain its research and development operations, and the available cash at the end of the second quarter will hardly be enough to cover the operating expenses by the end of the year. Earlier in October, the company amended the terms of two types of warrants to purchase shares of CBMX issued in February and April this year.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]According to the amendment, the exercise price of the warrants was reduced from $1.97 and $2.167 to $1.10 for the two types of warrants. Management‘s idea behind that price reduction has been to accelerate the exercise of the warrants, thus securing the cash from the proceeds as soon as possible. Yet, shareholders will also be seriously diluted with the issuance of 2.24 million new common shares.[[tagnumber 1]] [[tagnumber 11]] [[tagnumber 1]]
