Nuvilex, Inc. (PINK:NVLX) shot up a new yearly high yesterday as the company announced some preliminary test results showing that its new cancer agent formulation could kill cancer cells. The news and the previously initiated paid research coverage made NVLX stock also report its highest trading volume for the past three weeks. 
After the spike of the share price on the press release, NVLX closed the session at $0.0395, or 23.79% higher than on Tuesday, and the total daily volume was 8.12 million shares. All points at the most probable reason for that spike: the company’s latest press release.
In late April, Nuvilex announced to have completed the formulation of its first cancer agent called CRS2, or AlternaTM, and yesterday the promised results from the preliminary studies came out. According to the announcement, NVLX research has shown that AlternaTM has potential to influence cell division in cancer tissues and eventually lead to the death of the cancer cells. The company states that it intends to pursue additional testing.
Although the news sounds promising, it looks like even Nuvilex did not believe that it will be enough to capture sufficient investor interest without any kind of additional support. On Tuesday, it also came out that a small cap research firm will provide coverage for the stock. The research report is already available and Nuvilex paid $8,000 for it and for a three-month research subscription service.
NVLX stock chart looks very inspiring for traders this year, which does not apply to the company’s financial condition. As of end-January 2011, the liquid assets were about $34,000 as compared to current liabilities of over $3.4 million, $2.37 million of these being the current portion of the long-term debt.
Such working capital shortage could easily cast serious doubts about Nuvilex ability to stay in business, even if the management comes up with the greatest plan to reduce the cash burn rate and to settle the debts.
