added approximately 4% to its price and traded over 3 million shares on Friday.Over the last week, ADXS has had unusually high volumes, as compared to the average value of 848 thousand shares. Apparently, something has happened with the stock and traders’ interest has finally started to return.
Historical data shows that the huge volume started after the Chairman and CEO of Advaxis, Thomas A. Moore, presented the company’s corporate strategy at the 2010 Rodman & Renshaw Global Healthcare Conference. After the plan was released, over 1 million ADXS shares were traded, though the stock price started to move down.[BANNER]
On Friday, the chairman of the company issued a letter to the shareholders, explaining the stock activity as possibly “related to recent financing activity”. According to the 10-Q report of ADXS, in August the company has issued 9.8 million common shares for some “other activity going on” and the CEO claims that this could be the reason for the current market value of the stock. Though, no further information on that “other activity going on” was provided.
Advaxis, Inc. is a biotechnology company that uses a bioengineered bacterium to activate the immune system to treat cancer, infectious disease or allergic syndromes. At first sight, the quarterly financials of the company seem to be a bit improved as ADXS has increased its revenue and gross profit, though its operating loss has also got higher. In fact, when you look closer, you notice that Advaxis’s liabilities are about 10 times higher than its assets and the company has no sufficient cash to cover them.
Since its inception Advaxis has reported accumulated net losses of over $27 million and has had recurring negative cash flows from operations. According to its financial report, the company claims that it “will continue to generate significant losses from operations for the foreseeable future”.
