CLSP stock surged 64.29% up from the previous close and closed the market at $0.92 for a share. The 2.11 million share volume was the highest trading volume ever, while the share price reached its highest value not only for the past 52-weeks, but also for the past three years.
Along with the stock promotions for which no compensation was disclosed, an article on CLSP was published on Friday. It pointed out the recent developments of Synergy, implying that its current market value would suggest a much higher price for CLSP as well and would offer chances for low-risk arbitrage returns. Traders did not find annoying the fact that the author declared his intentions to trade himself the stock.
Callisto itself has not issued any news since the middle of August when its financials for the period ended this June came out. The bullish article from Friday might sound logical, though Synergy’s valuation should also be put under question and it should not be relied solely on a strong correlation of the two stocks.
Both companies still do not have any approved and marketable pharmaceutical products and the management of Callisto expects to continue relying on equity or debt financing to fund the further development of the drug candidates.
Moreover, additional funds will have to be raised by the end of this year to cover the expenses at the current cash burn rate, while the potential dilution is already considerable. The company has warrants, stock options and convertible preferred stock, which if exercised/converted could more than triple the current number of outstanding shares of common stock.
