Unpredictable, ‘newsless’ and hugely volatile. This is what investors associate AtheroNova Inc. (OTC:AHRO) with, judging from the recent market performance of AHRO stock.
Yesterday, in particular, AHRO lost 18.5% in value closing at $1.10 per share and ultimately becoming the 17th biggest decliner on the OTC market for the day. In terms of volume, 11,900 shares of common AHRO stock changed hands, which is twice as much as the company’s average daily trading volume. Neither official news, nor paid promotions appear to have caused such a scenario, which suggests that a diametrically opposite market performance today is also a possibility.
The last time AHRO shed light on its current business operations was more than 3 weeks ago. On Oct. 26, the company managers disclosed that they had attended a meeting with representatives of the U.S. Food and Drug Administration (FDA) to receive guidance regarding the development of their patent-pending AHRO-001 – a compound designed to prevent and regress atherosclerotic plague. AHRO-001 is the company’s first application for atherosclerosis treatment. Yet, it has a long way to go before hitting the shelves all over the United States.
As seen in AHRO’s most recent 10-Q, the company’s financial state could pose significant challenges to managers not only in the short, but also in the intermediate term. Presently, AHRO has:
- $686K in cash;
- working capital deficit of $7.5 million;
- quarterly net loss of approx. $4 million.
Based on these figures, it is quite unclear how exactly AHRO will be financing the development plan for its investigational new drug. Hopefully, management will do its best to attract more investors by clarifying the prospective benefits of creating such a drug.
