GNBT-logo.jpgIt has been an epic and disastrous half a year for Generex Biotechnology Corporation (OTC:GNBT) in terms of stock performance. There has been only one other occasion on which the former NASDAQ listed stock fell to $0.2 per share or below. Much like this week. Yet, yesterday’s session brought some hope. The reasons for this ultimately could tell whether a reverse of the negative trend is possible, or it will remain until the very bottom is reached. GNBT-23.03.11.png
The only catalyst for the intense trading yesterday was the announcement about Generex securities being delisted from NASDAQ stock market. The outcome was millions of shares traded and the stock price jumping from $0.2 to $0.24, which is the highest daily increase in the last several months.
In terms of this delisting notice, it has actually been a long and exhausting battle engaging several notifications for removal of listing of the common stock of Generex, followed by hearings, and extensions of the period to meet requirements. And during this hard period the stock kept plummeting. This is why yesterday was at least a breath of fresh air, which some traders might interpret as a first sign for the stock starting to accumulate value again.
The truth of the matter is, however, that such assessment could be made after next Wednesday, when a press conference and investor call would take place. At that point, Generex would provide its strategic plan for development and future growth. While the company has regulatory approvals for marketing and sale of some of its products in some Asian and African countries, there are still phase 3 clinical trials going on for the same in the US. [BANNER]
It is important to mention that there are also agreements in place with different state and private institutions for the distribution of its products. If, indeed, the overview that would follow next Wednesday sounds solid and manages to inspire confidence in investors, besides a rise in the stock price, a listing on the NASDAQ stock market might be possible again at some point in the future.
Yet, the accumulated deficit of the company tops $300 million already. Coupled with the ongoing legal proceedings associated with the company and the steady decline of the stock, it is high time for Generex to show investors that it has a solution to the above that is financially and technologically feasible and the steps to achieve it have already been taken. Otherwise, negativity and uncertainty would remain the notions associated with this stock.