The session closed at exactly 10 cents per share, or with a 9.09% decrease in the share price from Friday. In total, 5.62 million share were traded during the day, 64 times more than the average trading volume of the stock. Such massive selling has not been seen since last year and now it looks like the effect of the filing of the company’s latest financial report is still holding since there was no particular event yesterday to cause such an action.
According to the 10-K, OXIS International financial condition is still pretty disastrous, but the management does not intend to give up the fight. Currently, the company engages in the research and development of products that act against the harmful effects of “oxidative stress” and inflammation. OXIS states to have finished products ready for sale, but the total revenue for the whole 2010 amounted only $11,000 and it came in December from a direct mail test for the company’s for ErgoFlexTM. Given that OXIS manages to raise additional capital, it intends to keep trying to market its product in the current year.
At the end of last year, OXIS International has working capital deficit of $5.5 million and total debt of $5.65 million, thus its products will have to be truly unique and promising to attract new investments. In addition, the 162 million shares that the company already has might turn into 417 million, if all of the outstanding options, warrants and convertible promissory notes get exercised, or respectively converted. The threat of a massive dilution of that kind can hardly pass by unnoticed, and OXIS long-term downtrend suggests that the market already anticipates it.
