Generex Biotechnology Corp. (OTCMKTS:GNBT) Ends the Week in the Red
Just before the weekend Generex Biotechnology Corp. (OTCMKTS:GNBT) slid down towards the bottom of the stock chart with nearly 20% to close at $0.031. This came hot on the heels of several positive session that brought the ticker 30% up to as high as $0.043. Investors decided that the price levels are high enough and cashed in their holdings resulting in traded volume of more than 15 million shares.
GNBT are concentrated on the development of drug delivery systems and technologies and more specifically they have created a way for drugs typically injected into the body to be absorbed orally without any deposits left in the lungs. The company has been in business since 1995 but are still in the development stage. This is clearly visible in their financials. Their latest report is a 10-Q form for the period ending January 31 and according to it they had:
- $1,2 million cash
- $1.3 total current assets
- $9.5 million total current liabilities
- no revenue for the period
- $6.2 million net loss
These numbers are normal for a biotechnology company that has no finished product yet. The scary part is the accumulated deficit of $364 million since their inception. In addition last month a stockholders’ meeting was held and some drastic changes were made. Seeing as GNBT had already burned through all of their $750 million authorized common shares they doubled that amount and now the maxim is 1.5 billion. Not only that but they also approved a reverse split that has to be carried out before September 2014.
GNBT in contrast to most of the other pennystock biomedical companies are quite close to getting their products approved by the FDA. Through their wholly-owned subsidiary Antigen Express, Inc. they are trying to initiate a stage III clinical trial for the AE37 breast cancer vaccine. If GNBT continues ahead with their business plans a positive trend may be supported but for now they remain quite a volatile investment.
