Angiotech Pharmaceuticals, Inc. (USA) (NASDAQ:ANPI) stock, slowly declining since last July, noted its new 52-week low.
Even investor enthusiasm from last week to support the upward direction of ANPI shares was too short and not bold.
Last Tuesday, ANPI was granted by NASDAQ a grace period until January 3, 2011 to regain compliance with its listing rule for the minimum bid price of $1.00 per share.
Maybe, this was one of the reasons for the fleeting pull up of ANPI stock, followed by a rapid pull back.
This week, the rolling down ANPI shares fell 13%.
Yesterday, when the new 52-week low was recorded, ANPI, like a typical penny stock, closed at $0.67 per share. The volume traded was tripled average.
Unfortunately, the company’s financials, despite the positive operating income, are not able to convince investors that ANPI may soon report net incomes.
The Company’s future interest payments related to its existing long-term debt are and will remain significant, despite renegotiated and amended this April credit facility with Wells Fargo.
In addition, ANPI is significantly leveraged and has significant future interest payments with the 7.75% Senior Subordinated Notes and the Floating Rate Notes.[BANNER]
As stated in the last financial report, “The Company faces a number of risks and uncertainties that may significantly impact its ability to generate cash flows from its operations and to fund its capital expenditures and future opportunities that might be available to it.”
Since this May, when the above report was announced, up to date there are no disclosures by the company about active measures taken by ANPI to face the liquidity problem.
Maybe, during the annual general and special meeting of shareholders, which will be held at the end of this month, under agenda’s item “Other Business: To consider and transact such other business as may properly come before the Meeting.” the issue will be discussed.
