LOL BS quote, "Premarket OCAT $7.80: Shares bought by Vanguard and Fidelity may be helping uptrend. Shorts finding it hard to find covering shares."
Vanguard and Fidelity don't buy some pittance of shares in the pre-market? What myth is this now? When an order gets electronically routed, as they ALL do nowadays, does it have a stamp or something on it that says "Fidelity" or "Vanguard", LOL???
The open short interest on this stock, as a percentage of float is noise level. It's nothing and has nothing to do with the share price weakness. LACK OF BUYERS and lack of a long term financing plan is probably what drives 90% of this right now IMO. They failed and botched their secondary. They live off a Lincoln credit card line which is pittance money compared to what it will take to fund and run a large phase II, let alone pay their overhead bloat and keep the lights on (what, like 6 or 7 "C" level managers for a 35 person total headcount company? It's got a serious case of TOP BLOAT IMHO, like a major serious case).
Lack of cash and the fact the phase II is sitting, going nowhere and it's now mid 2015 (remember the ole we hope to have it started by end of 2014?). That's all that's going on IMO- and why this still trades BELOW where it was as an OTC penny stinker, below where it was even 3 yrs ago.
From their just recently filed 10-K:
PAGE 16:
"Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort."
PAGE F-7:
"The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the Company as a going concern. However, as of December 31, 2014, the Company has an accumulated deficit of $349.1 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner. On a long-term basis, we have no expectation of generating any meaningful revenues from our product candidates for a substantial period of time and must rely on raising funds in capital transactions to finance our research and development programs. Our future cash requirements will depend on many factors, including the pace and scope of our research and development programs, the costs involved in filing, prosecuting and enforcing patents, and other costs associated with commercializing our potential products. Accordingly, management’s plans to continue as a going concern contemplate raising additional capital including the execution of an agreement for a $30 million equity line in late June 2014, of which approximately $18.6 million remains available as of December 31, 2014. There can be no assurances that management can raise the necessary additional capital on favorable terms or at all. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern"
