TapImmune Inc. (OTCMKTS:TPIV) Gets Its Teeth Kicked In

Yesterday, TapImmune Inc. (OTCMKTS:TPIV) lost all the gains it had managed to make in the previous session before it had even made it halfway through the day. What gives?

Well, to answer that question, a look at the company’s state of affairs is most assuredly in order. The press releases tend to be optimistic – and judging by the claims in them, the company is making actual progress with respect to its goal of putting a product out on the market.

TPIV‘s financials don’t look half bad either, especially for a pharmaceutical OTC Markets company with no revenues:

• cash – $3.1 million
• current assets – $3.2 million
• current liabilities – $13 million
• loss from operations – $1.1 million

Sure, that number next to “liabilities” seems awfully high. However, anyone willing to take a closer look at that will discover that most of said sum is due to derivative liabilities, and the company’s actual debt is not that staggering.

It also bears noting that none of the debt currently outstanding seems to be of the investor-value-crushing-toxic-convertible variety. However, in this case, it’s not the TPIV‘s present stock-issuance-related shenanigans that investors should be wary of – it’s the company’s past questionable funding decisions that could come back around and bite the unwary on the backside.

Some time ago, a TPIV made a private placement and sold 12.3 million investment units at $0.20 a pop. Each of said units consisted of one share of TPIV common stock, as well as a varying number of warrants for the purchase of more stock at fixed prices.

Although it did afford the company some breathing room by procuring $2.3 million worth of funds in cash, that move nonetheless caused quite a bit of dilution. Two months ago, said warrants were still the source of much grief, with 5 million warrants getting exercised to buy TPIV at $0.50 before the end of Q2 2015 alone. The first two months of Q3 saw a further 7.89 million warrants turn into shares at the even more ridiculous price of $0.20 apiece.

Is it any wonder that the ticker is falling, when such grandiose opportunities for warrant holders to make a huge profit still exist?