The stock price of ADPT Corporation (PINK:ADPT
, ADPT message board
) has been quite unpredictable over the past days. After a couple of small gains
this week, yesterday ADPT broke up the climb again. The stock lost 0.75% of its price and its traded volume substantially decreased.
The strangest thing, however, appears to be the fact that ADPT fell down despite the recent stock alerts. These came up during the last two days by Clubpennystocks, which alerted on a possible volume spike of ADPT. Though, instead of rising up, the volume of the stock crashed down heavily.
Apart from the alerts, no news on ADPT was released these days. Historical records show that on Sept 12 the company announced that its Board of Directors has approved the exchange ratios to be utilized for a reverse stock split of its shares of common stock, to be followed by a forward stock split. ADPT also adopted an effective date for such stock splits to occur.
This news was reported at the time when some members of ADPT directors have disposed certain amount of shares of the company's common stock. While, at the same time SPH Group Holdings LLC acquired a huge portion of ADPT shares.
The last Form 4 filed with the SEC stated that "as of the close of business on September 28, 2011, SPHG Holdings owned directly 41,031,674 Shares, constituting approximately 37.7% of the Shares outstanding". However, yesterday the massive acquiring of ADPT shares continued and it's not certain when it's going to end.
Meanwhile, the latest 10-Q of ADPT looks rather contradictory. As of July 1, the company had more assets than liabilities, though it was out of revenues. Still, the management believe their cash balances will be sufficient to satisfy the anticipated cash needs for working capital and capital expenditures for at least the next 12 months.
Nevertheless, they claim that the consummation of the sale of the DPS Business materially changed their operations, including the anticipated cash needs. Thus, the company is seeking business acquisition opportunities and taking other actions to redeploy its capital.
However, the team could be required to fund their cash requirements by alternative financing, which may dilute the existing shareholders.