Yesterday’s higher than usual volume on the penny stock of Immunovative, Inc. (IMUN) proved to many that sellers aren’t bailing out on the patent squatters. With news of a 12th patent issued to Immunovative Therapies Ltd. with whom the Company has an exclusive worldwide license with, the closer wither of the two cancer drugs get, the more IMUN stock becomes a hold for those who are already up 50% plus since August. Until commercialization comes after FDA approval, private placements are going to force some long traders to rethink their strategy.
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IMUN Stock Chart
Market Cap: 46.60M
Last: 0.25, up 0.0001 (0.04%)
Dollar Volume: $534,339
Average Trade Size: 5,705
Issued and Outstanding: 186,416,669
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Basically, about a year ago, Immunovative received the exclusive and worldwide license to commercialize all the Licensed Products based on Immunovative Therapies, Ltd.’s current and future patents and a patent in-licensed from the University of Arizona. The license granted covers two experimental products for the treatment of cancer in clinical development called AlloStim™ and Allo Vax™ . The problem with this, as is normal for early stage biopharmaceutical companies, is that until they can license them out, the G&A expenses are gonna cost investors directly.
Since signing the licensing agreement, Immunovative has incurred $6,543,166 as of September 30, 2012. To finance these costs, private placements are going to be a normal event with roughly 800 million shares to use up until they need to consider a reverse stock split.
During the year ended March 31, 2012, the Company sold 13,450,000 shares of IMUN stock, under private placement agreements, at $0.05 per share aggregating $672,500 and 22,853,560 shares of IMUN stock @ $0.10 per share aggregating $2,285,356. During the six months ended September 30, 2012, the Company sold for cash, 41,260,448 shares of its common stock at $0.10 to $0.15 per share aggregating $4,121,047, net of commissions aggregating $623,956 paid in cash and 5,335,000 shares of common stock valued at $677,000 in introducing fees. The $4.12 million is almost enough to finance four months at the current rate the G&A expense was reported at for Q3.
Beyond that, the Company, on September 15, 2012, initiated a mezzanine round private placement to sell 20,000,000 shares of IMUN stock at a price of $0.15 per share, or $3,000,000 in total. As of November 14, 2012, the Company has received subscription agreements for $2,235,100 of which approximately $920,000 was received subsequent to September 30, 2012 through November 15, 2012. Immunovative has issued approximately 6.125 million shares based on the receipts.
The best part about the numerous stock transactions which have taken place was that on July 23, 2012, Immunovative entered into a consulting agreement with Wall Street Relations, Inc. to provide strategic advisory services with the implementation of branding concepts, marketing, and strategic introductions to institutional investors and accredited individual investors and introductions to prospective advisory board and management candidates. Translation: To pump IMUN stock. The agreement is for a period of six months which only cost the Company $730,000 in cash and 2,000,000 shares.
About IMUN Stock
Immunovative, Inc. operates through an exclusive License Agreement with Immunovative Therapies, Ltd., an Israeli biopharmaceutical company that was founded in May 2004 specializing in the development of novel immunotherapy drug products that incorporate living immune cells as the active ingredients for treatment of cancer and infectious disease.
Last 5 Trading Sessions:
Click here to view the SEC filings for IMUN.
Bottom Line: Biotech and biopharmaceutical penny stocks like IMUN are a gamblers delight. Today they are hoping to ge the funding needed to fil spots for their Phase 2/3 clinical trials for cancer drug testing, tomorrow they have a deal with some major pharma player and have their decimal point pushed one space to the right. For that reason, IMUN stock should be watched from time to time for potential entry positions.
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