Nelly Shishkova

OXiGENE, Inc. (NASDAQ:OXGN) On The High Move

by Nelly Shishkova August 10, 2010
OXiGENE, Inc. (NASDAQ:OXGN) started moving higher yesterday. Just for a day, the stock gained 36.09% on its price and image164.pngattracted a large number of investors. Along with the price jump, OXGN's volume rose up to over 5 million shares traded, which is a shocking value for the stock. The high momentum immediately placed Oxigene among the big market gainers of the day.

As there is no other recent news on the company, it turns out that the latest announcement by OXGN should be the only explanation for the stock price move. According to the press release, Oxigene was to reveal its 2010 second quarter earnings yesterday. However, the results are not published yet.

Following the records, it appeared that last month Oxigene has received a letter from NASDAQ, indicating that the company does not comply with the minimum $50 million market value requirement for continued listing. The letter provided OXGN an initial grace period until January 18, 2011 to regain compliance and not get delisted from NASDAQ.

Oxigene.gifAt the same time, Oxigene entered into a material definitive agreement with McNicoll, Lewis & Vlak LLC. According to it, the company may issue and sell shares of its common stock for a total offering price of up to $10 million. OXGN will, however, pay the underwriter a commission fee of up to 7.0% of the gross sales price per share of any common stock sold.

Still, the first quarter results of Oxigene don't look satisfying at all. The company has not generated any revenues and gross profits, but has suffered a net loss of over $6 thousand. The net income by the end of March is around $11 thousand and OXGN has more liabilities than assets on its balance sheet and hasn't covered its long-term debt yet.

Based on these results, Oxigene is currently in a bad financial condition and is highly dependent on its second quarter earnings. The new results are up to be seen.

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