One day before the fatal Friday13, Hana Biosciences, Inc. (OTC:HNAB) stock dived to its new 52-week low.
It seems that the latest special meeting of the company’s stockholders and the announcement of the fourth Warburg Pincus’ director designee were not appreciated by investors.
As the Chairman of the Board of Directors at Hana Biosciences stated, “at such an exciting and critical time in the Company’s history”, HNAB stock is falling down to a new bottom.
The critical time for HNAB stock evokes many associations.
One of them is that the company’s ambitious plans are to return the plunging HNAB stock back to the Nasdaq Capital Market using the panacea of the reverse stock split.
The requirement is that HNAB should exceed $4.00 per share. The practice shows, that the above mentioned panacea is not always working, since investor aversion towards HNAB stock price could be stronger than the company’s attempts to increase the share price.
The other dimension of the critical period is HNAB’s recently limited supply of cash available for operations. At the end of this March, HNAB had a stockholder’s deficit of approximately $22.8 million and an accumulated deficit of $140.6 million.
At the beginning of June, HNAB entered into an Investment Agreement with the Warburg Pincus Purchasers and the Deerfield Purchasers. According to the terms of the agreement, the company issued and sold 400,000 shares, resulting in aggregate gross proceeds to HNAB of $40 million.
Prior to the date of that agreement, Deerfield Purchasers beneficially owned approximately 18.9 million shares of the company’s common stock, representing approximately 22.4% of the outstanding common stock.
Before the crucial deal in June, HNAB had drawn down $27.5 million of the total $30 million available under the loan facility agreement with Deerfield Management. Last October, the commitment period of the loan facility agreement expired and the company was no longer able to draw down the remaining $2.5 million.
After the critical begin of June, in order to settle the new agreement with Warburg Pincus Purchasers, and in order to survive, HNAB agreed to make changes at all possible levels, but at what price?[BANNER]
One of the last changes 
is the proposed in the above mentioned proxy vote for the amendment of the company’s certificate of incorporation. The amendment should allow the number of authorized shares of HNAB common stock to be increased or decreased by the vote of the majority of the company’s stockholders.
Yesterday, the impact of investors selling HNAB shares was not so significant, as measured on the percentage decline in the stock price. More than two million shares changed hands during the session, which is over ten times the average volume for HNAB stock.
