TapImmune Inc. (OTCMKTS:TPIV) Slumps After Funding Announcement

TapImmune Inc. (OTCMKTS:TPIV) managed to add 8.74% to its market value yesterday, after announcing that it has secured some non-dilutive funding, but judging by today’s red opening, it may not be able to keep its gains.

Evidently, TPIV has signed a License and Assignment Agreement with the Mayo Foundation for Medical Education and Research, that will allow the Mayo Foundation to make use of certain TPIV-owned breast, lung and ovarian cancer patents in return for $350 thousand.

At first glance, this does not look like a bad trade-off. TPIV has long years of research and development ahead of it, and will need every scrap of funding it can get its hands if it wants to have a chance to successfully get a product out on the market.

One can easily see why investors would be especially enthusiastic about the news that the much needed funding can be acquired in ways that do not involve drowning investor value in dilution.

Unfortunately, although this state of developments may be painted in optimistic colors, it depicts is an isolated incident. TPIV investor value is still being crushed by the weight of the company’s previous exploits, which include issuing 5.5 million shares in return for an aggregate of $1.1 million.

Some basic math reveals that the shares were sold at a price of $0.2 a piece – and this happened while said shares cost $0.4 and $0.8 to buy on the open market – which is worrying to say the least.

Although, truth be told, it is not as worrying as the fact that between Nov. 17, 2014 and July 17, 2015 TPIV‘s shares issued have jumped from under 20 million to over 43 million. That’s more than 100% dilution over the span of just 8 months.

Long story short – the news was good, but not good enough to keep the ticker afloat in this flood of dilution. This being the case, it is really no wonder it TPIV is falling.