TapImmune Inc. (OTCMKTS:TPIV) Is Still Climbing The Charts

TapImmune Inc. (OTCMKTS:TPIV) managed to add another 9.47% to its market value on Friday, heading up again, after the hiccup it experienced in the two previous sessions.

As the charts indicate, the company’s latest ascent began about two weeks ago, when it published the news that it had entered into an agreement with its institutional investors for a near term capital infusion of up to $4.93 million. That certainly stirred investors, and they were obviously impressed enough to allow heavy buying to push the ticker from $0.33 all the way to $0.83, but should they have been?

True, the news certainly deserved notice, especially since we’re talking about a reasonably financially stable company, as far as its latest quarterly report is any indication:

• cash – $1.45 million
• current assets – $1.53 million
• current liabilities – $3.3 million
• NO REVENUES
• quarterly net loss – $981 thousand

TPIV has some money on hand, and seems to be making progress – that much appears obvious. Still, as usual, it would not be prudent for investors to concentrate on TPIV‘s potential to the exclusion of the potential pitfalls on its path to commercial success.

Suffice it to say that TPIV might need every last cent of the money it was infused with, if it is to make through the costly and notoriously long trip out of the development stage – and who know whether or not that would be enough?

On a due diligence related note, the company’s share structure may look relatively clear in its latest 10-Q, but investors should certainly not dismiss that potential threat – during the year 2014, “approximately $4.8 million of debt and $0.5 million of accrued interest was converted into preferred stock, which immediately converted into 14 million shares of common stock”. Basically, 14 million out of the company’s current 32 million shares were issued less than a year ago. 

Investors are advised to punch those numbers into a calculator and seeing whether or not they like the end result before loading the boat with TPIV shares, because the possibility of dilution should certainly be taken into account.

Toxic convertible debt still seems to be the best way for OTC Markets pharmaceutical companies to finance themselves – so let the buyer be ware.