Todor Pichurov

OXIS International, Inc. (OTCMKTS:OXIS) Trips Up After Report

by Todor Pichurov April 2, 2015

After filing its annual report, OXIS International, Inc. (OTCMKTS:OXIS, OXIS message board) took a tumble on the charts yesterday. The stock lost over 12% and stopped at $0.047 per share by the bell. Volume cooled off significantly from Tuesday's 16 million shares but remained above the average, at 9 million OXIS shares changing hands.

The company is a biopharma with a website composed in lacking English. It tells investors that OXIS “develops, commercializes and addresses existing clinical shortcomings of related products”. How one develops clinical shortcomings will probably remain a mystery. More importantly, the same block of text contains the word “CANNABINOIDS”, spelled out in all caps. Everyone knows what cannabinoids are these days, thanks to the pot stock boom of 2014. OXIS intends to use cannabinoids to fight cancer.

The company put up a press release informing it chose to suspend trading on the Euronext exchange. The same PR expressed the company's “desire” to uplist to the NASDAQ. If wishes were ponies... There is no information on how OXIS intends to reach the share price required for a NASDAQ listing, or meet any of the other requirements for that matter.

The company's 10-K was published just as the markets closed on March 31. Here is the brief number rundown:

  • $855 thousand in cash
  • $29 million in current liabilities
  • $61 thousand in annual revenues
  • $23.4 million in annual net loss

Granted, loss from operations was just $2.6 million and the scary total net loss figure comes from stacking over $15 million in 'change in fair value of warrant and derivative liabilities'. Speaking of those, the company is raising money to fund its operations in ways that may not sit well with some shareholders.

On March 13 the company issued convertibles for $2 million that convert at $0.025 per share. The warrants to purchase an extra 82 million shares at $0.03 are a more reasonable offer, seeing how OXIS was never closed below three cents per share in March.

Yesterday's pullback was as much a reaction to the annual report as it was a natural retrace in the wake of excitement spurred by the NASDAQ PR on March 31. Where the company heads next remains to be seen.

Comments 0

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