Can Ampliphi Biosciences Corp (OTCMKTS:APHB) Reverse Its Trend?

On March 27, 2015 the market showed exceptional interest in the stock of Ampliphi Biosciences Corp (OTCMKTS:APHB). The interest was huge and it was evident in the record share volume of over 8.1 million shares. The increased interest pushed the stock price 36.3% up to close at 30 cents.

No follow-up

The positive momentum of Ampliphi stock price disappeared soon, and on the following day it closed flat at 30 cents. Then, on March 31, 2015 the company received a patent for “Bacteriophage-containing Therapeutic Agents” from the European Patent Office. On the day the company disclosed the news, APHB reacted negative and closed with loss of 1.67%. Last Thursday the stock price accelerated its decline and this time dropped more than 11% closing at $0.249.

The performance

Trading in penny stocks has always been quite risky. However, the financial position of the company seems to be stable enough. As per the latest quarterly report ended September 30, 2014, the company recorded $9.8 million in cash. The total current assets came at $10.1 million and $2.5 million came as total current liabilities. The revenue came at zero and the loss from operations was $5 million.

The news

In an 8-K form submitted in March, Ampliphi Biosciences Corp (OTCMKTS:APHB) said that its financial reports for FY2013 and the first three quarter of FY2014 need to be restated as certain non-cash items were reported incorrectly. The problem has delayed annual report for FY2014 that was expected to be submitted by the end of March. However, the company submitted a Notification of Late Filing.

Private placement

In March, Ampliphi was able to increase the cash position via private placement of shares. It sold 78.7 million shares at a price of $0.165 and warrants to buy another 19.6 million shares that had an exercise price of $0.215.The transaction resulted in almost $12.1 million in net proceeds. In last trading session, APHB stock price declined 14.29% to close at $0.240.

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