Will Guided Therapeutics Inc (OTCBB:GTHP) Keep Its Gains?
tags: GTHP
For the past couple of sessions the stock of Guided Therapeutics Inc (OTCBB:GTHP) has been extremely volatile. On Monday and Tuesday it posted two positive sessions of gains just to fall hard on Wednesday, wiping 29% of its value. Yesterday investors once again showed significant support for the company and the increased buying propelled the ticker 38.8% up the chart to a close at $0.0068. Will GTHP manage to keep the momentum going, though?
Well, there have been no new PRs that could support a more prolonged upwards course. The latest press release came on June 13 when GTHP announced that they had received an order for a third LuViva Advanced Cervical Scan and 500 single-use disposable cervical guides. Whatever positive effect this announcement might have had, however, was quickly obliterated by the 8-K filing that was submitted on the very next day.
It covered the exchange of warrants exercisable for 98 million shares, amount that was subject to exponential increase thanks to certain anti-dilution provisions, for 13.5 million shares and new warrants that, if exercised, could result in the issuance of 173 million shares. It is no wonder that investors weren’t exactly thrilled when just a couple of months before that GTHP had issued over 18 million common shares and 4,312 C1 preferred shares for the surrender of 1,912 Series C preferred shares.
These issuances had such a tremendous impact on the performance of the stock due to the fact that on February 24, 2016, GTHP had performed a 1-for-100 reverse split that left them with around 3.1 million shares. By May 17 the O/S of the company had grown to more than 29.8 million shares. During the 2016 annual meeting of stockholders GTHP will seek approval for yet another reverse split in a ratio between 1-for-10 and 1-for-400. If approved the company be able to implement the split at any point during the next three years.
In early trading today GTHP are moving further up currently trading almost 40% in the green at $0.0095.
