TapImmune Inc. (OTCMKTS:TPIV) Drops Further Down

During yesterday’s trading the stock of TapImmune Inc. (OTCMKTS:TPIV) suffered another severe correction and closed the session at $0.641 for a loss of 14.5%. After hitting a high of $1.71 on June 23 the stock of the company reversed its direction and since then has registered only 6 green sessions. As a result hose investors that bought in at the June high could now be facing losses of over 62.5%. The downtrend could continue until the market price of the stock has aligned with the recently amended exercise price of TPIV’s warrants.

Although TapImmune is in a better shape than the majority of the pennystock companies they are still relying on external sources of capital in order to fund their drug programs. As a result the outstanding shares have been diluted quite significantly. Last year TPIV improved their balance sheet by reducing the outstanding debt through the issuance of 14 million shares. In March, this year, the company sold 12,320,000 investment units at $0.20.

Each unit contained one common share and 1 warrant from each series – A-1, B-1, C-1, D-1, E-1. Initially the warrants had exercise prices ranging from $0.40 to $1.50 but as we said earlier these prices got amended. The exercise price of the A/A-1 warrants was reduced from $1.50 to just $0.10 while the B/B-1 and C/C-1 warrants had their prices reduced by 50% to $0.20 and $0.50, respectively. On June 16 5 million C-1 warrants were exercised resulting in the issuance of 5 million new shares. As of July 15 TPIV had 38 million outstanding shares.

At least the recent dilution is being offset by the fact that TPIV are getting some serious proceeds with witch the company plans to fund its Phase II clinical trials. In the past months TPIV completed successfully two Phase I trials and reported extremely encouraging results.

Without new PRs containing concrete details about the upcoming clinical studies, however, the stock could continue to slide downwards. Not to mention that investing in companies developing new drugs and treatments is always risky. Do your own research and plan your trades carefully before putting any money on the line.