Here's what I saw.
Feb 2013, SRL gets their hands on some expiring onko-sure tests and prints a hype "news article" about selling onko-sure in India. Retail investors did not realize that SRL had no agreement with Radient and their onko-sure sales meant nothing to Radient, so retail investors jumped on the volume momo and ran the RXPC pps from .0001 to .0004.
The PPS fell back to .0001 of course because hype does not sustain PPS.
Then in 2014 some Tweeters discovered that they could Tweet about zombie biotechs being "MJ Plays" because the zombie companies would not refute this. RXPC was just one of many zombie stocks that saw huge volume because of this MJ hype. RXPC shares once again spiked from .0001 to .0004 -- twice. Look at the chart.
The PPS stalled at .0004 each time because there was massive selling pressure. The lenders converted the last of the A/S and bagholders sold gratefully. After that second MJ rumor spike, all RXPC shares were firmly in the hands of retail investors -- and not just any retail investors, but specifically the new breed of eTraders who don't read 8k's and don't do their own DD.
Then out came the 8k announcing that Radient was insolvent and shares were being revoked. The new RXPC shareholders didn't read that 8k. There was another volume spike and this new breed of eTrader didn't care why - the PPS rose again!
The eTraders who made money flipping RXPC at .0004 on these volume spikes in 2014 put in buy orders for .0001 - about 500 million shares, a mere $50,000, peanuts on Wall Street. Since they don't do DD and don't read 8k's they didn't know that the company was about to disintegrate and the patent application was rejected. The eTraders who were holding the bag at .0004 weren't going to sell at .0001 for the same reasons.
I don't know why the educated RXPC shareholders who have been holding since 2011 didn't sell their shares for .0001 after that 8k was released. .0001 was better than nothing, and that 8k didn't leave anything to the imagination. Now they have nothing.
Radient has no assets. No entity is going to reinstate Radient. Biotech is all about money, not about curing cancer or saving the world.
To say that "the lack of a selloff after the 8k proves that there is a merger" shows a profound lack of market savvy, IMO. But that lack of savvy was a prerequisite for buying and/or holding RXPC after Radient admitted in 2011 that the Jade Holding was worthless, CIT was worthless, the India Deal was a lie, the Mayo Study was a lie, and NuVax was shut down because Radient couldn't pay Bhatia and Chang. I don't understand why anyone would hold after all that - any merger/takeover rumor should have died in 2011. Yet here we are today, discussing the merger rumor as if none of that had happened.
The eTraders who bought at .0001 and sold at .0004 on hype were the savvy ones, IMO. But the problem with zombie biotechs is: somebody always gets left holding the bag. Every stock is a pyramid scheme and some of them, like RXPC, collapse. Anyone who held RXPC after that revocation/insolvency 8k has to seriously re-evaluate their investment strategy, IMO.
