Advanced Life Sciences Holdings, Inc. (OTC:ADLS) went on a losing streak over the last few trading sessions after the company secured the capital they needed to pay back part of the outstanding loan.Advanced Life Sciences announced they’ve received $1.5 million of proceeds from the exercise of the unit warrants, which were issued in July public offering of securities. The proceeds were of vital importance since ADLS had to cover $1.5 million of their amended business loan by October 1, as agreed with The Leaders Bank.[BANNER]
Like most development stage companies’ stocks, ADLS has demonstrated its volatile nature after the company announced the funds are available. The stock price plummeted over 15% in two days following the news, possibly fearing the dilutive effect of the exercise of the warrants. The losing streak has brought interest in the stock though, and since the company should eliminate part of their debt right now, traders could see some recovery of the price.
As for proceeds needed for operations, on September 28, 2010 the company secured another agreement for up to $10 million in funding, to be received over a period of two years from the stock sales to YA Global Master SPV LTD.
The development stage company doesn’t have any proceeds from the drug sales – their only revenues come from grants and stock sales. Successful public equity offerings are especially needed for the expensive Phase III trials on variants of Restanza drug.
