OncoSec Medical Inc (OTCMKTS:ONCS) Descends Despite PR
After spending the past week on a roller-coaster ride, descending one day and recovering the next, OncoSec Medical Inc (OTCMKTS:ONCS) started this one by dipping. Due to all the backtracking, the stock ended the week with zero progress, at $0.5249, and after yesterday’s session was 1.89% down on a volume of 431.3 thousand shares, and is currently sitting at $0.515.
Yesterday ONCS issued a press release and filed a Post-Effective Amendment to FORM S-1 on FORM S-3. Let’s start by looking through the PR. It was released several hours before the opening bell, and disclosed that the company has received a new grant in the amount of $585,000 from the Virginia Biosciences Health Research Corporation. According to the press release, the VBHRC grant will be used for the study of “a novel gene therapy approach for the treatment of malignant melanoma”. This is the second such announcement, as two weeks ago, on Oct 27, the company disclosed that it has received a Phase I Small Business Innovation Research grant from the National Institute of Health. The SBIR grant could even bring ONCS additional $1 million funding for Phase II trials, depending on the results of the Phase I trials.
As for the Post-Effective Amendment, the prospectus disclosed that there are 8,44 million shares of common stock, comprised of shares and warrants. 4 million were acquired through a Private Placement Offer from June, 2011, and the rest are issuable upon exercise of warrants at $0.50.
Since the start of the month the company has been issuing press releases on a regular basis. Other than yesterday’s PR, the other recent ones were issued on Nov 5 and Nov 3. On Wednesday, ONCS announced that the company will be attending the Melanoma Bridge 2014, which will take place in Naples, from Dec 3 to Dec 6. At the event ONCS will present new clinical data evaluating its “ImmunoPulse immunotherapy in patients with melanoma”. With last Monday’s release, ONCS disclosed a list of the events it will be attending and presenting at in November.
The company’s annual report was filed on Oct 10, it was for the fiscal year ended July 31, and showed an overall positive bottom line. ONCS increased its cash supply to the impressive $37.8 million, and showed quite the substantial working capital. The increased cash comes from equity financing and will allow the company continue its operations for “at least the next 12 months”. The last time ONCS turned to equity financing was on June 6, when it closed a Direct Public Offer, and received around $15 million in net proceeds.
Do your own research and take into account all the risks associated with the company before putting any money on the line.
