Genspera Inc (OTCMKTS:GNSZ) Squashed to 52-Week Low

After an excited rush that sent Genspera Inc (OTCMKTS:GNSZ) to new 6-month highs, the company’s share price managed to slip and slide from its high perch right down to a fresh 52-week low in the span of just three market sessions. On Friday GNSZ dropped another 11% to stop at $0.52 per share by the bell.

While traders on discussion boards are arguing over technical analysis details and why the stock did not bounce after getting crushed two consecutive sessions, shareholders who are treating GNSZ as a long-term investment are wringing their hands at the new 52-week low.

The company was very thinly traded for months on end, before daily volume started picking up in late August. The heavy volume days seem to have been triggered by an announcement that GNSZ‘s CEO, Craig Dionne, Ph.D., will present company data from its Phase 2 trials at the Rodman & Renshaw global investor conference. The press release did not really go into any specifics and was more of a news bleep that a major breakthrough announcement, yet the market reacted overzealously.

GNSZ has a couple of cancer treatment products advanced to Phase 2 trials, which is no small feat for an OTC company but then again, even Phase 2 is far from the end of the long road towards the commercialization of a treatment. The thin volumes the stock traded in further helped the massive volatility observed over the past few sessions.

There is also the matter with one of GNSZ‘s 2015 financing deals. The company sold units priced at $0.70. Each unit consisted of one common share and two warrants to purchase one common share at $0.70 and one at $0.80. It’s not that GNSZ‘s peak at $0.90 per share was a massive premium on those prices but the company did put up an S-1 statement registering the shares underlying the warrants and the SEC greenlit it in late August.