TapImmune Inc. (OTCMKTS:TPIV) Soars After New Cash Injection
Yesterday TapImmune Inc. (OTCMKTS:TPIV) spiked late in the session and ultimately closed nearly 20% in the green, pushing over the $1 dividing line. TPIV stopped at $1.04 per share after 1.2 million shares changed hands.
The last couple of months have been really kind to TPIV. The stock was trading around a far humbler $0.20 per share in mid-April. Volume accumulation that started in May pushed the price up. A June 2 press release informed that institutional investors will have the option to exercise short-term warrants for up to $4.9 million. The news sent TPIV up 46% over the very next market session and that momentum carried over into the next sessions as well.
Yesterday TPIV announced that the company received an “immediate infusion” of $2.5 million from Eastern Capital Limited – the company’s largest institutional investor. The money comes from the exercise of 5 million warrants to purchase TPIV shares at $0.50 per share. The money will be used for pushing towards the start of Phase II trials in “triple negative breast cancer”, according to the PR.
The good news is that the 5,000,000 shares purchased are unregistered and cannot be resold immediately. The not-so-good news is that they can be registered for resale at a future point in time and are issued at a time when the company trades at levels well above the warrants’ exercise price.
A newly amended Schedule 13D listed Eastern Capital Limited as the owner of 27.5 million TPIV shares, 10 million of those issued and outstanding and another 17.5 million in the form of shares issuable upon the exercise of the numerous series of warrants held by the third party. Following the latest warrant exercising and 5 million new shares issued, TPIV has 38.6 million shares issued and outstanding.
The remaining immediately exercisable warrants held by Eastern Capital have initial exercise prices ranging from $0.20 to $0.50 per share. It should perhaps also be noted that TPIV has been heavily overbought for days now.
