$heff's $tation of $tocks & $olid DD

[Chimaera]

$APHB is an interesting one...novel alternative to antibiotics, using bateriophages (viruses specific to bacteria). No impending catalysts and the stock price has been falling AND they recently filed an $8.3 MM S-1 to issue additional shares but have not listed a date or per share price:

APHB S-1 filed April 6th 2017

So, definite downside concerns. However, they also recently announced a 1:10 reverse split effective at the close on April 24th:

APHB 8-K filed April 19th 2017

This is interesting because APHB has a market cap of only $5.2 MM with 16 million shares outstanding (according to Finviz, and as per their 2016 10-K, page 1: "As of March 17, 2017, 16,488,120 shares of the Registrant’s Common Stock were outstanding.")

So after a 1:10 reverse split AND ASSUMING no immediate dilution due to the S-1, APHP would be very similar to another recent high flyer: CBIO.

Post reverse split:

APHB market cap $5.2 MM, 1.6 million shares outstanding
CBIO market cap $5.3 MM, 1.0 million shares outstanding

H.C. Wainwright is the firm associated with the S-1, and APHB also released a statement recently that "We also announced that following a review of the status of our internal programs, resources and capabilities, we have begun to explore a wide range of strategic alternatives to maximize value for our shareholders. We have retained H.C. Wainwright & Co., LLC to advise the Company and its board of directors in this effort." (see the 8-K linked above)

APHB management

Not at all my usual MO when it comes to biotech stock DD, but strikes me as an interesting situation. You would assume that if the reduced float results in a trading spike, they will sell into it at some point via the S-1. Any thoughts from traders or others?