Nelly Shishkova

Generex Biotechnology Corp. (OTC:GNBT) Stock Fell Down Again

by Nelly Shishkova August 11, 2011
Yesterday, Generex Biotechnology Corp. (OTC:GNBT) broke up the climb and took the way down again. The stock lost 2.54% GNBT_chart2.pngfor the day and its traded volume substantially decreased. However, the strangest thing here is that there is no reasonable explanation on the contradictory price moves lately.

According to the records, Generex has not released any news over the past days. The latest announcements by the company came up last week, when GNBT published a corporate update of its of developments. A few days later, another announcement reported that Amarantus BioSciences and Generex Biotechnology intended to collaborate on cell therapy for diabetes.

Although the news suggested a positive impact on traders, it failed to push up GNBT stock price and it kept falling down. Still, investors keep their eyes wide-open for the next company's announcement.

Generex.gifGenerex is engaged in the research, development and commercialization of drug delivery systems and technologies. At the annual shareholder meeting of the company in June, the shareholders approved an amendment in its Restated Certificate of Incorporation. The amendment should allow GNBT to effect at any time prior to December 7, 2012 a reverse stock split of its common stock at a still undetermined exchange ratio, as well as to reduce proportionally the number of the common stock authorized for issuance. Further on, no more details on the issue were reported.

Meanwhile, the company's last 10-Q report remains completely disastrous. As of April 30, 2011 the company has registered:

* $269,086 revenue
* $16,231,126 net loss
* $13,694,413 total assets
* $16,559,929 total liabilities

So, what is obvious here is that Generex has been operating under a going concern, while being threatened of numerous risk factors beyond the company's control.

Comments 0

Type the characters that you see in the box (5 characters).