International Stem Cell Corp. (OTCMKTS:ISCO) Crashes After Warrant Offering
The public offering of warrants killed the stock of International Stem Cell Corp. (OTCMKTS:ISCO), driving down existing trade on massive selling. The ticker went down to 15 cents, the price of warrant execution, after losing 40% of the price in dollar volumes exceeding $840,000. 
On Friday, ISCO announced the sale of 20 million investment units, each consisting of one share of common stock plus a Series A warrant to purchase a share at 15 cents. There are also Series B warrants for the purchase of the aforementioned units. It is no wonder that the units, priced at 15 cents, drove down the price as investors tried to make a quick profit of the opportunity. 
On its side, ISCO may be trying to gather up resources to continue its operations with stem cell research. Speaking of resources, let’s see where this penny stock, one among many in the biotech sector, stands in terms of real resources:
- $1.9 million cash
- $3.9 million total current assets
- $1.5 million total current liabilities
- $1.2 million product sales
- $1.7 million quarterly net loss
This picture shows a company that is still selling product a bit too novel, and is still struggling to get over the initial research and some debt. The stock has been sliding in the past three years, boosted at the beginning of 2013 by a brief promotion with a budget of $45,000. But otherwise, ISCO is holding a lot of downside factors, including the latest sale of warrants.
Other stem cell companies have a different play, such as BioMatrix Scientific, Inc. (OTCMKTS:BMSN). This selection was heavily promoted, but soon afterward turned into a short-term double-zero bet.
And if you want to see a tale of recovery, the graph of AP Pharma, Inc. (OTCBB:APPA) shows what happens to a pharmaceutical ticker beat by negative news. APPA crashed after a bad FDA pronouncement, and since then has staged tentative series up, though mostly locked in a tight range.
What would follow for ISCO with all those warrant units floating about is anyone’s guess. The pricing is not inviting to new buying above 15 cents, and the price may deteriorate further. In any case, it is best to estimate your preferred time horizon before taking up this shaky ticker. Do your own research and do not rely on limited data to decide on ISCO.
