TapImmune Inc. (OTCMKTS:TPIV) Bounces On Financing News

TapImmune Inc. (OTCMKTS:TPIV) managed to add 18.80% to its market value yesterday, after declaring that it has secured another million dollars worth of funding.

The company’s latest 8-K hit the web before the session’s start, so investors had a lot of time to familiarize themselves with the latest turn of events, and when the market did open, they were ready. About an hour into early trading, the ticker spiked on a wave of buying and managed to retain its high all the way to the close.

Truth be told, it wouldn’t be surprising if TPIV manages to hold onto these market cap gains today as well. After all, unlike most other hyped-up OTC Markets penny stocks that crash immediately after jumping on hype, TPIV actually has a reasonably solid balance sheet going for it, which is always a good start.

However, investors should definitely not focus only on the “funding” part of the filing. That $1.1 million came at the cost of another 5.5 million shares being issued. Simple math determines that the shares were bought at a price of $0.2 a pop, at a time when the company’s share prices were two to four times higher.

As a result of the issuance, as of July 17, 2015 TPIV had 43 million shares of common stock issued and outstanding. Just to put things into perspective – that number was lower than 20 million as of Nov. 17, 2014.

Both long term investors and opportunistic traders alike should consider these facts, and what they represent in terms of threat to investor value.