Is TapImmune Inc.(OTCMKTS:TPIV) Up To Its Old Tricks Again?

TapImmune Inc.(OTCMKTS:TPIV) managed to climb all the way up to $0.725 on Monday, but unfortunately for its fervent supporters, its climb up the charts did not last, and it by the look of today’s red opening, its slide may endure for a couple of more sessions.

Anyone that’s kept an eye on the ticker would have seen that one coming, because it is a phenomenon we have observed on multiple occasions with promising OTC Markets pharmaceutical companies over the years in general, and with TPIV in particular.

Things always go down like this – investors get excited by the latest batch of excellent news on TPIV. The ticker shoots up for a session or two on heavy volume, then gets slammed right down, as if its climb was just the cue someone was waiting for to dump their shares on the market.

Now, admittedly, we can’t be sure that this is exactly what has been happening to TPIV these last few times that the pattern has repeated itself. However, one must also admit that the list of suspects that could potentially be responsible for a dump in this particular case is not exactly reassuring.

Not long ago, TPIV management team decided it was a good idea to sell 12.3 million investment units, each consisting of one share and a bunch of warrants, for $0.20 per unit. It could be argued that this wasn’t such a bad deal at the time… until the terms of the warrants were amended to make them and they became immediately exercisable at prices ranging from $0.10 to $0.50.

This happened back in May 2015, and suffice it to say that by the end of Q2 5 million warrants had already been exercised. July and August say 7.89 million more warrants turned into shares at a price of $0.20 a pop.

Since the company has handed out so much cheap shares to noteholders, is it really any wonder that the ticker fails to retain ground after each positive announcement?

Investors wanting to make money out of trading TPIV stock definitely need to take these facts into account before jumping on the cancer research hype train, because although its progress seems real and its causes certainly look noble, TPIV‘s stock may prove perilous to the unwary.