After a week of losses, Callisto Pharmaceuticals, Inc. (OTC:CLSP) stood on the massive trade. Last Friday, the stock price 
remained $0.27 per share, while its traded volume exceeded 1 million shares. Though, the reason for the sudden volume spike is still unknown.
Callisto has not released any news on its business for a long time and no one has a clue about its activities. The only data on the company appears to be its financial report, which came up last month. Unfortunately, it was completely discouraging.
As of September 30, total liabilities of CLSP were
approximately 12 times higher than the assets, while the stockholders’ deficit reached over $11 million. At the same time, the company’s revenues kept missing, and the deficit accumulated during development stage continued to increase.
Callisto stated that they expect to incur additional losses to perform further research and development activities and do not currently have any commercial biopharmaceutical products, and do not expect to have such for several years, if at all.[BANNER]
In other words, the company will be required to raise additional capital within this year to complete the development and commercialization of current product candidates and to continue to fund their operations.
However, any additional financing is not guaranteed and if Callisto raises additional funds by issuing equity securities, its stockholders may experience significant dilution.
All the above-mentioned, accompanied by the lack of news on the company lights a red signal for investors and Callisto’s future operation.
