The last two trading sessions raised investors’ hopes that Lightlake Therapeutics (OTC:LLTP) might be getting out of the negative trend which it has been following since mid-July.
Yesterday, LLTP gained 8% for the second time in a row, closing the session at its late-August level of $0.54 per share. The volume surpassed the 360K mark, scoring a four-week high for the company. This performance was practically a very close replica of what happened on Wednesday when LLTP again went up 8%, albeit on a lower turnover of 247 thousand.
A quick look at the chart reveals that the trading range for LLTP stock for the last 52 weeks stretches from $0.94 to $0.10 per share. Now, LLTP is right in the middle and the situation seems fairly stable. However, the company has not issued any news since Aug. 24 when it announced the beginning of Phase II of the clinical trial of its proprietary nasal spray designed to treat Binge Eating Disorder. The trial must have already started, yet no results have been reported so far.
Lightlake Therapeutics claims to be a developing company occupying the high-potential biopharmaceutical industry. The company is targeted toward obese and overweight patients suffering from binge eating. LLTP also intends to develop a wide range of products to cure drug addicts.
LLTP has been providing financial information quite diligently. As seen in its latest 10-Q form, which covers the quarter ended Apr. 30, 2011, LLTP has:
- cash reserves in excess of $156K;
- $182K of assets vs. $448K of liabilities;
- 73 million of O/S out of 200 million of A/S
- a quarterly net loss of $5.4 million.
Since LLTP is an early-stage development company and currently has no final release product candidates, the lack of revenue is hardly a surprise. Unfortunately, the size of the losses does not match the company’s assets. Even if LLTP exhausted all of its A/S, it would not be able to raise enough capital to continue operating as a going concern. So, unless managers somehow manage to attract new investors, their efforts will be left hanging in the balance.
