traded volume rose up to approximately 895 thousand shares for the day.No other explanation on the high trade can be found, except for the latest news by NANOVIRICIDES, reporting that its drug candidates have demonstrated significant efficacy in the completed cell culture studies. The announcement was made three days ago and as soon as it was published, the stock rose up. Though NNVC moved down on the next day, yesterday the climb continued.[BANNER]
Historical data points that the stock has had frequent price jumps during the last six months, however, since May this year the price has decreased by 50%. Presently, as NNVC is rising again, it was mentioned among the most active stocks these days.
NanoViricides, Inc. is a development stage nano-biopharmaceutical company engaged in the discovery, development and commercialization of anti-viral therapeutics. According to the records, at the end of this June the company has made certain filings that point its intentions to raise funds for a private investment. In the announcement, Nanoviricides also claimed that it has had no backers in the planned fundraising yet.
The 2010 balance sheet of NNVC contains as much liabilities and stockholders’ equity as total assets. As of the end of March, the company has suffered a net loss of over $4 million and its cash is not enough to cover all the expenses.
In its financial report, NANOVIRICIDES states that it has the sufficient cash reserves to achieve all of its budgeted plans through the end of next year and the company estimates that: “we will need approximately an additional $5 M to $10 M over the next 18 months for further development of our pipeline in addition to the recently completed financing of $5,000,000.” In addition, NNVC anticipates “incurring additional costs of approximately $10 to 15 million dollars in the upcoming twenty-four months to construct or obtain facilities”.
Based on all these facts, it turns out that now the company is highly dependent on its drug candidates and on debt financing to find the sufficient capital for its operations.
