Marina Biotech, Inc. (OTCMKTS:MRNA) Continues Upward Trend After 8-K Filing
Marina Biotech, Inc. (OTCMKTS:MRNA) made a remarkable run in the past three days, as it sent out updates on its already patent-protected therapy. On Tuesday, MRNA grew by more than 20% to $1.708, on buying volumes of $1.29 million. MRNA is still outside promotion, but it is waking up as another promising pharmaceutical stock. 
Still, the latest 8-K filing is a bit worrying, being about the issue of convertible preferred stock at below-market prices. On the positive sides, the proceeds from selling stocks to a group of investors led by Steven T. Newby would reach $6 million and bridge the company over the continuing research operations on RNA-based therapies. MRNA attracted investors’ attention at a specialized San Francisco forum, one of the best tools of promotion, especially for higher-quality pharmaceutical businesses.
On the negative side, the preferred shares would convert at a price of $0.75 per share, far below the current market prices. The new batch of shares would be offered for sale until March 7th, and afterward the warrants would be exercisable for the next five years. While this will provide funds for the company, it may create selling pressures and bring the ticker down, especially if combined with a general loss in optimism.
Before the warrants and the expected financial injection, MRNA held the following strengths and weaknesses:
- $1.9 million cash
- $2.5 million total current assets
- $4.6 million total current liabilities
- $29.4 million annual net loss
MRNA is in this way a typical developer of a rather ambitious treatment, which is taking its toll on the balance sheet. This is some encouragement to investors that are holding the ticker for the longer term.
Currently, most other pharmaceutical stocks are in some way linked to the medical or recreational marijuana sector. One of the more dramatic climbers that looked immensely positive was Intelligent Living, Inc. (OTCMKTS:ILIV), a food supplements company that went up on active publicity. ILIV, however, has been sinking in the past days, down more than 23% to $0.0091.
And with Advanced Cell Technology, Inc. (OTCMKTS:ACTC) the party seems to be over, as the ticker started a new sideways drift around seven cents after a period of more robust climbing as far as $0.09.
If you still like MRNA, keep in mind that it is seen mostly as a longer-term possibility, though it has also shown months-long valleys and rather fast price cuts from time to time. Be aware of the company’s specifics before loading your portfolio with this ticker.
