Galectin Therapeutics Inc. (OTC:GALT) is a development-stage company which creates new therapies for fibrotic disease and cancer. Recently, the stock of the company lost some of its value,but the drop was halted last Friday.
GALT closed flat at $0.95 with 250 thousand shares changing hands during Friday’s session after the company had issued a PR about a statement 10X Fund had made.[BANNER]
10X Fund is the largest shareholder of GALT, and last Friday it issued a statement saying 10X had increased its ownership position by acquiring approximately 3.6 million shares through the exercise of warrants. The company intends to exercise its remaining warrants in the near future.
GALT is still in the development stage, so the proceeds of the warrants are probably welcome. However, any exercise of warrants dilutes the positions of the remaining shareholders. Yet, the statement suggests “10X Fund is very optimistic about the future of the Company…” and that may give some hope to shareholders.
The company isn’t likely to start generating revenue any time soon, but with these latest developments it seems GALT should have secured the needed funding to operate through 2012 and even some time after that.
If the company is successful in getting approval and commercializing some product, it can provide investors with some returns, but that is still off in the future.
