Genspera Inc (OTCMKTS:GNSZ) Down in Double Digits Again

After the share price of Genspera Inc (OTCMKTS:GNSZ) got slammed in the ground on Wednesday, yesterday’s session marked another red close for the company. GNSZ slid 10% down to close at $0.58 by the bell. Volume cooled off significantly, down to 618 thousand shares changing hands.

GNSZ is a biotech company, working on a number of treatments for various types of cancer. Two of its treatments have advanced to Phase 2 trials, with another one to commence next year. GNSZ is far from the being the only OTC company that has set its sights on curing cancer and is searching for alternative cures.

The fact of the matter is, GNSZ was traded rather thinly until recently, with daily volumes staying within five-digit numbers, even dropping to four digits. A new flurry of activity and volume sent the stock on quite a hike, assisted by a press release about GNSZ‘s CEO, Craig Dionne, Ph.D., presenting at a global investor conference.

The stock put on almost 30% within the space of just a few sessions, with investor excitement seemingly materializing out of thin air, with no materially significant events within that span of time. This alone is reason enough to warrant the massive pullback that is still taking place.

Adding to this the fact that the company secured financing in July 2015 through the sale of units costing $0.70 apiece and consisting of a common share and two warrants for the purchase of common shares at $0.70 and $0.80, the sharp drop looks even more understandable. Shortly after the investment deal itself, there appeared an S-1 registration statement for the shares and warrants under the same deal. The SEC cleared the S-1 with an notice of effectiveness a couple of weeks later.