The shares of PolyMedix, Inc. (OTC:PYMX) were like frozen by investor uncertainty towards the future fair price movement for more than a week.
Yesterday, in a doubled trading volume PYMX has drown a red hot candlestick with a lower shadow almost touching the 52-week low.
After yesterday’s plunging down of PYMX, more and more investors are looking for the reason about the weak shares’ performance.
Since there were no recent company announcements, even rumours related to the theme have bean read, maybe as a viable source of information.
One of the most discussed topics in investor forums was the possible cash shortage of the company. Opposed to some expressed opinions, the last financial statements of PolyMedix, Inc. are rather convincing that the company’s liquidity is not as threatened as discussed.
It is a fact, that the deficit accumulated by PYMX during the development stage through December 31, 2010 was $64 million. The company expects also to incur losses in future periods. But still, the pure arithmetic shows that the total liabilities of PYMX are almost 1.7 times less than its total assets.
For the year ended December 31, 2010 PYMX reported cash and cash equivalents of $19.1 million. At the same time, for the whole last year the company incurred operating expenses totalling $16.7 million.
Last year, PolyMedix, Inc. almost doubled its grant and contract revenues in comparison with those in 2009. The increase was due to the company’s new and continued grants and contracts.[BANNER]
In addition, PYMX has an investment agreement with the Dutchess Opportunity Fund, II, L.P.(Dutchess). According to it, Dutchess commitment is to purchase up to $10,000,000 (but not to exceed 12,000,000 shares) of the company’s common stock. As stated by PolyMedix, Inc., at the end of the last year the company had not issued any shares pursuant to the above agreement.
So, most detailed due diligence on PolyMedix, Inc. shows that perhaps not the company’s liquidity problems, nor its products pipeline, were the main reason for the steady and constant share prise decrease.
As known, to be a publicity traded company requires always more. The transparency and the frequent communication with investors are the indispensable simple tools if the company wants a fair evaluation of its shares. Unfortunately, the last available company update was made in February. Then, PolyMedix, Inc. released the successful completion of a Phase 1 exposure-escalation study with its antibiotic PMX-30063.
