Generex Biotechnology Corp. (OTCMKTS:GNBT) With A Strong Start Of 2014
After fluctuating around $0.03 for the past four months the stock of Generex Biotechnology Corp. (OTCMKTS:GNBT) was finally able to move in the right direction. The start of the new year brought a fresh dose of optimism and the ticker has been on a constant climb making just one red close out of the last eight sessions.
Last Friday it posted its third highest traded volume for the past year when nearly 37 million shares changed their owners. Pushed by the increase in interest GNBT surged even further up reaching an intraday high of $0.056. Although they finished the day a bit lower at $0.048 it was still 30% above the previous close.
Is there a valid reason for this resurgence though? As we have said before in our articles about the company their products have undeniable potential. The problem is that more and more of the long-term shareholders are starting to lose their patience with the management. In September GNBT said in a PR that the conference call concerning their Oral-lyn insulin spray program is going to be postponed until the review done by the Indian Drugs Controller General is completed. Now, months later there hasn’t been a word about what is going on.
Well, the company has said on multiple occasions that they don’t have the funds to support the Oral-lyn and are leaving everything to their licensee Shreya Life Sciences Pvt. Ltd. So even though they have been focused solely on the cancer vaccine AE37 no new information has been provided on it, either. On January 6 the company announced that the database of the currently ongoing Phase II trial has been sent to their statisticians for analysis. All that’s left for investors is to wait for the preliminary results that should be made public at some point this month.
Meanwhile GNBT has been issuing more and more shares. In November they even decided to issue some to themselves. Instead of money the board of directors received stock options for around 7.5 million shares with a conversion price of just $0.001 which considerably lower than the marker price. And Seahawk Capital Partners are continuing to receive free shares as a finder’s fee “for introducing the company to its investors”. Currently the number of outstanding shares has reached 619 million out of 1.5 billion authorized.
GNBT requires serious due diligence before any invetment decisions are made. Even if the AE37 appeals to you keep in mind that it will need at least 5 more years before it is ready and that is if everything goes as planned.
GNBT requires serious due diligence before any invetment decisions are made. Even if the AE37 appeals to you keep in mind that it will need at least 5 more years before it is ready and that is if everything goes as planned.
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