So far in this month, AMARANTUS BIOSCI INC (OTCMKTS:AMBS) released several encouraging PRs that have ultimately boosted the stock price. The company disclosed that it obtained Notice of Allowance for its two U.S. Patent Applications. They demonstrated positive preliminary results for MANF in retinitis pigmentosa and promising initial results of its MSPrecise diagnostic test. Last Friday, the company reported completion of a study that supported the concept for MANF’s development in the cure of Parkinson’s disease.
The momentum
There were several positive developments announced in the month, but the chart represents a entirely different story. Since the start of May, the stock has been trading between $0.045 and $0.05. It was only in last week when the ticker started to surge upwards. Last Wednesday and Thursday, the stock price added 8% and 8.5% to its total value, respectively. On Friday, it registered a volatile session as it opened at $0.058, entered in the red zone a couple of hours before the market close and bounced back to close slightly higher at $0.0582.
The performance
In April, Amarantus was able to support its financials by concluding a $5 million investment from “Discover Growth Fund”. The company issued 1,087 shares of the Series G Preferred Stock in exchange of the abovementioned investment. The conversion price was fixed at $0.06, which poses one of the biggest threat and that is the continuous issuance of shares.
Problem continues
As per the last annual report for FY2014, Amarantus issued nearly 270 million shares. In 2015, the rate of issuing new shares has increased drastically. In last four months, the company issued almost 207 million shares. The financial report for 1Q2015 to be released in near future will disclose the current share structure of Amarantus.
In last trading session, the stock price of AMARANTUS BIOSCI INC (OTCMKTS:AMBS) surged more than 10% to close the trading session at $0.0642. The gains came at a share volume of 7.01 million compared to average share volume of 4.17 million.
