Investors who had expected to see Curaxis Pharmaceutical Corp, f/k/a Auto Search Cars Inc.(PINK:CURX)
, going through the roof last Monday were left bitterly disappointed. Instead of a glorious run, CURX stock delivered a run-of-the-mill performance.
On the one hand, CURX stock closed Monday's session at $0.42 per share, losing 7% in value. On the other hand, however, it enjoyed an immense spike in terms of volume. By the end of the session, almost 34 thousand shares of CURX stock had changed hands, marking both a five-fold increase over the average volume and a giant step forward as compared to the 666 shares traded last Friday.
Earlier this month, the company proudly announced that its Memryte, a drug hormone product designed to treat Alzheimer's disease, had been picked up by a renowned R & D magazine and included in its 'Top 100 Great Investigational Drugs In Development'. Now, three weeks later, a promoter has received $3,500
to raise awareness about CURX relying on that same three-week-old press release.
CURX describes itself as an 'emerging specialty pharmaceutical company' that has already created a strong product candidate, i.e the Memryte mentioned above. In addition, the company claims to be developing a special therapeutic platform aimed at treating multiple cancers.
The company is a diligent information provider regarding its financial condition. Two weeks ago, it filed a full-on 10-Q report with the SEC. Covering the quarter ended Mar. 31, 2011, the document showed:
- $337K in current assets vs. $7.9 million in current liabilities;
- zero revenues and a quarterly net loss in excess of $0.5 million.
So far, the company has exhausted 15% of its 480 thousand authorized shares. Given its severe financial condition, however, CURX stockholders run a very high risk of possible dilution in the immediate future.