TapImmune Inc. (OTCMKTS:TPIV)’s Slide Turns Ugly

TapImmune Inc. (OTCMKTS:TPIV) had a nice ride to the top of the charts earlier this moth, but by yesterday it seemed to be well and truly over, as the ticker blazed its way to the bottom of the charts at an accelerated pace.

Many investors were excited about the good news surrounding TPIV, and there has certainly been plenty of hype to go around recently. However, even though the company’s alleged scientific achievements are seem remarkable, investors it is in no way advisable for investors to focus entirely on them. instead, a more broad perspective of the company’s current state should be kept – and even a glance at that shows a rather grim picture.

True, TPIV‘s financials don’t really look as horrible as those of most other OTC Markets development stage pharmaceutical penny stocks:

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

Unfortunately, TPIV does suffer from the same problems as most companies in the branch – it is plagued by toxic funding and rampant dilution.

Case in point – two weeks ago, one of TPIV‘s note holders “exercised 5,000,000 Series C-1 warrants to purchase 5,000,000 shares of our common stock in exchange for a total purchase price of $2,500,000”. This means that said note-holder bought 5 million shares at the price of $0.5, at a time when the market price was $0.9, and rising fast. Would it really be any wonder if the current crash was due to that same note holder’s dumping of shares , that were converted at ridiculous discounts?

Suffice it to say that 14 million out of the company’s current 37 million shares were issued less than a year ago. Another 5 million were converted just days ago, at hideous rates. TPIV‘s authorized shares are 500 MILLION – so there is plenty of room for dilution.

Investors should really pay attention to those facts, rather than concentrate only on the good news surrounding TPIV.