TapImmune Inc. (OTCMKTS:TPIV) Struggles to Hold Remaining June Gains

It seems the cheering started a little too soon with TapImmune Inc. (OTCMKTS:TPIV). Shareholders were ecstatic to see the stock climb from a modest couple of dimes per share to over $1.50 within under two months. However, TPIV is having a really hard time holding those gains. Yesterday the stock dropped another 6% to close at $0.779 per share.

TPIV has so far wiped nearly 50% from its highest closing price in June. There was obviously a lot of money to be made if traders had a high enough risk tolerance and were aggressive enough but it also seems shareholders may have underestimated the amount of profit taking that would take place.

TPIV soared to its recent highs propelled by very optimistic news concerning the test results from a trial involving cancer patients who had undergone operative and chemo therapy treatment and were injected with a vaccine. On the day the company announced 19 out of 20 evaluable patients reacted with a “robust” immune response to six injections of the vaccine, TPIV hit an intra-day high of $1.71.

Now, almost a dollar lower, technical traders are calculating just how further the stock may go before it stabilizes. It’s difficult to use technicals for a ticker that moved primarily on Phase 1 trial results and there was a lot of excitement around the move.

It’s only logical that TPIV would come down from its recent highs, having in mind the company issued considerable amounts of shares at prices well below a dollar. In January and March 2015 the company sold over 12 million units, each consisting of a common share priced $0.20 apiece and warrants for the purchase of shares at higher prices. In late May, an amendment to the terms of the warrants slashed their exercise price dramatically, bringing them in the $0.10 – $0.50 range.

In mid-June TPIV issued another 5 million shares of common stock at $0.50 per share, as a result of the exercise of some of the warrants.

It’s completely understandable that the market is pushing TPIV lower and this may continue until the company’s market price is in line with at least the higher end of its warrant exercise prices.