Invivo Therapeutics Holdings, Corp. (OTCBB:NVIV) Bull Run Under Question
Invivo Therapeutics Holdings, Corp. (OTCBB:NVIV) is on yet another upward run, a part of a bigger bullish trend started at the beginning of the year. It seems 2013 means more activity for yet another penny stock, which reacted with regular press releases. 
NVIV attracts interest with a potential re-listing to a higher tier exchange. Also, the company recently raised $16.1 million from a warrant placement, thus solidifying its business prospects. On the plus side, NVIV showed its own mettle so far, and even if a promoter picks up the ticker, the effect will only add to the general hype. 
The uplisting was promised around 2 months ago, and if everything was to plan, it could even happen in the next few days. We may expect a correction if NVIV does not deliver.
Fundamentally, NVIV is loaded with the risks and deficits of a company in the expensive and risky biotech industry:
- $10.3 million cash
- $13.8 million total assets
- $28.17 million total liabilities
- $24.5 million derivative warrant debt
- No revenues so far
- $13.3 million quarterly loss until March 2013
The company marked upward of 10 million loss on the derivatives, recognized in the latest quarter, which deepened the losses. Still, NVIV has taken up a long process that may eventually lead to revenues, although so far it relies on debt and other sources of financing.
NVIV trades on relatively low share volumes, but along with increased activity, there is a curious record of insider transactions. Since the start of the climb, insider officers have activated automatic sales at predetermined prices, locking in gains from their holdings. This has not depressed the market, but it may tell us someone has a reason to wish for a disproportionate increase in the stock price. The most active seller is officer Reynolds Francis.
The only other way to a higher share price and visibility would be the listing to a higher tier exchange, as we already mentioned.
NVIV is following the logic of biopharmaceutical companies as it develops its innovative spinal injury technologies. The hopes of a new treatment are the most powerful engine behind a stock’s climb. This was the case of AP Pharma, Inc. (OTCBB:APPA), which dropped suddenly after losing approval on one of its proposed treatments. Needless to say, negative news affected Titan Pharmaceuticals, Inc. (OTCBB:TTNP) even worse.
In the case of NVIV, the re-listing may be a great boost, but it may also mean a great disappointment if it takes longer than promised. In any case, NVIV is at quite a high position, and has been known for temporary corrections, so stay away unless you can afford some sliding back.
