Then, all of a sudden and on no news whatsoever, PVCT share price surged on Friday. That one-day rise of the stock can hardly be more than one of a speculative nature. Yesterday, not only all of the gain was lost, but also drop to a new six-month bottom at $0.91 followed. The closing price of $0.935 was somewhat higher, but still 21.43% down from the previous close and the volume sold out was almost 10 times the average.
It looks like the drama could not have been caused by the filed already in August quarterly report of the company. Through two subsequent private placements of convertible preferred stock, common stock and warrants in March and in April PVCT raised gross proceeds of nearly $10 million. The cash will according to the prospectus be used for not further specified general corporate purposes and will be enough to cover all the expenses for the next two years.
The excitement on the secured funding did not last that long, however. PVCT is still in the development stage and has not made any product revenues yet. The company intends to license its dermatology drug product candidate (PH-10) on the basis of its Phase 2 results, which are also still in process of being completed. The product candidate PV-10 for the treatment of metastatic melanoma is also not approved yet.
PVCT plans to earn license revenues also from the other two segments, OTC drugs and medical devices, though no concrete arrangements have been made so far. Another bother fact is that the company has in the past spent more for general and administrative costs than for product research and development.
To expect profitability does not seem reasonable, though dilution is still quite probable for shareholders. The company has four employees by now, but is also using the services of a number of consultants, which have so far been paid in shares and in warrants. Only for the first six months of this year, the 67.4 million shares outstanding rose to almost 80 million, due mostly to new issuances and to exercises of warrants and options.
