Soligenix Inc (OTCBB:SNGX) Dives Below $1 per Share
Unlike an alarmingly large number of its OTC counterparts, Soligenix Inc (OTCBB:SNGX) isn’t just a one-week promo-induced flash in the pan. Far from it, in fact. The stock was actually once listed on the AMEX exchange, and although it was sent to the OTC in 2006, it has remained relatively active over the last ten years or so.
That’s said, the performance, especially over the last few months has been quite disappointing. Although there are a few bounces (such as the one seen on Tuesday), overall, the ticker has been digging a hole in the ground and yesterday, after it logged a brand new 52-week low of $0.87, it stopped at $0.91 per share which is the lowest close in almost three years.
The underwhelming performance might come as a bit of a shock for the people who have taken a quick look at the latest 10-Q. Here’s what the figures look like:
- cash: $4 million
- current assets: $6 million
- current liabilities: $6.8 million
- quarterly revenues: $3.9 million
- quarterly net income: $2.8 million
The revenues are growing, and there’s a decent amount of cash in the bank. Even the working capital deficit isn’t too terrible. There is the question of profitability, though. Indeed, the 10-Q shows a net income, but that’s due to changes in the fair value of derivatives. The actual operational loss sits at about $1.3 million, which, you have to agree, is significant.
Nevertheless, the general public seems interested in SNGX‘s products and, naturally enough, there are people who are willing to invest in the company. Back in July, for example, Kodiak Capital as well as a few other enterprises agreed to a securities purchase agreement which should mean that they will buy up to $10 million worth of SNGX stock.
The cash should keep the company afloat, but there is a problem. Kodiak and the rest of the investors will be buying the shares at a 20% discount which means that a significant amount of stock might see the light of day at a price cheaper than the market value. And that, in Pennyland in particular, is never a good thing.
So, especially with those profit margins, SNGX remains a risky bet. Be sure to tread carefully.
