Yesterday's trading session brought Transgenomic, Inc. (OTC:TBIO)
two records - a six-month low market value and a record-breaking volume for the same time frame.
Closing trade at $0.995 per share, TBIO lost almost 12% in value registering its lowest close for the last six months or so. What is more, TBIO was subject to such intense trade that more than 740 thousand shares changed hands by the end of the working day setting a six-month record for the company.
TBIO has just issued a prospectus relating to the resale of up to 33 million common shares par value $0.01 per share. The shares were issued in February in connection with a private placement offering.
TBIO finished the fiscal year ended Dec. 31, 2011 with a working capital surplus of approx. $0.9 million. However, while the company's current assets over the last three fiscal years have edged up by 19%, its current liabilities have skyrocketed by an astonishing 297%. Unless the trend changes, TBIO will certainly have trouble facing its short-term obligations this year. Considering that the company only has 50 cents of equity for every dollar it has borrowed, raising external capital might not be as easy as shareholders would expect.
As far as TBIO's net results are concerned, they aren't enviable, either. The company's net loss for 2011 is close to $10 million, i.e three times as high as the loss incurred in the preceding year.
Based on the facts mentioned above, TBIO's flow seems nothing but logical. This is what the future will have in store for TBIO stockholders unless managers come up with a commercially viable idea.