NightHawk Biosciences Inc (NHWK)

[jboatswain]

Manipulation:

VWAP: 1.245 Total Vol: 1M
The support at 1.30 broke when the vol was around 250K. Stop loss raiding helped further depress the price.

Since the retail bulls have already loaded up, not many could have averaged down. So, some big guy might have loaded up 500K shares (totalVolume/2).

HTBX borrowed $7.5M (in 4 tranches: 1.5M, 1.5M, 2.25M, 2.25M).
http://www.bizjournals.com/triangle/news/2014/08/25/square-1-bank-lends-7-5m-to-durhams-heat-biologics.html
"As of September 30, 2015 we had drawn down three of the four Tranche Loans and expect to draw the last tranche by the end of the year."
"at the end of 2015 we had drawn down all four Tranche Loans for a total of $7.5 million."

Negative and positive covenants:

"



First Amendment: nothing to worry in this amendment, as htbx is in full compliance.

http://ir.heatbio.com/all-sec-filings/content/0001553350-15-000660/htbx_ex4z1.htm

Second Amendment:
https://biz.yahoo.com/e/160303/htbx8-k.html
http://ir.heatbio.com/all-sec-filings/content/0001553350-16-001670/0001553350-16-001670.pdf
A takeout from the second amendment:
"(i) on or before September 30, 2016, the Company shall have enrolled at least 18 patients in the Company’s DURGA (HS-110) clinical trial"

HTBX has fulfilled the above covenant on Sep 14, 2016:
http://www.heatbio.com/newsroom/press-releases/detail/531/heat-biologics-resumes-enrollment-in-its-non-small-cell
"Heat intends to complete enrollment of each of the two 9-patient cohorts consistent with the original design of the trial, with the potential to expand each cohort up to 30 patients. The topline data for additional patients enrolled in the trial are anticipated within the next twelve months.”

See what HTBX said before: "If we do not comply with the covenants under our secured loans with Square 1 Bank, we may be forced to seek other sources of
financing and if we default on our secured loan with Square 1 Bank we could be forced to suspend all operations.”

Since HTBX is in full compliance with all covenants, there is NO NEED for htbx to pay back 20% of the loan. Instead, they could just pay the interest rate. Add another dot to this picture: HTBX cancelled an offering.

On Friday, they came out with a PR: "while pursuing an AGGRESSIVE clinical program that will generate four IMPORTANT data readouts this quarter"

Given all these facts, why SP was depressed? When everything points to a positive direction, and the stock been in a consolidation phase for 25 trading days, SP lost 7% with 1M volume.

1M volume is not a significant volume because on 9/23 with closing price of 1.44 the volume was 1M. On the next trading day 9/26, the SP opened with 1.49, closed at 1.44 with 3M. So, 9/26 was a big day compared to 9/7.

If you are long, either HOLD or average down. There are lots of people who wanna buy around $1.00; and these sukers tell you to sell your holdings to depress the SP, so that they can join the wagon. Don't give in to that if you have done DD.