Dip because false uplisting rumor expires tomorrow.
Before the rumor the stock was at $3.95 to $4.00, which is roughly the PPS range where NVIV should be at now that the date of the uplisting circulated by rumor is known to be false.
When dealing with a strong catalyst stock like NVIV, normal chart levels for supply/demand or support/resistance don't work, as price depends on removing risk as each catalyst event comes to pass, and the stock is then valued higher.
There were/are 6 short term catalysts which are in the following stages of being priced into the PPS:
1) HUD/IDE appproval: FDA approved exemption, so human implants can begin. This was responsible for the rise from a pre-approval baseline of $2.25 to $2.52, up to a temporary $2.85 to $3.25 baseline before the next catalyst in sequence.
2) Company announcing intention to uplist in next 60 days. This was responsible for the next PPS rise up to a new temporary baseline between $3.62 to $3.99, based on that news alone.
3) Company announcing end of period to call in warrants, and receipt of $16M cash from warrant conversions to fund operations through 2014, and affirming that they are now in a position to uplist based on their market cap not impacted by warrant derivative liability to meet uplisting criteria. This news was responsible for the rise up to a PPS range of $3.95 to $4.30.
4) Rumor that uplisting would be June 10 or June 13, stated as "if uplisting occurred" but nonetheless incited speculation. Responsible for rise to the price of $4.75. Now that June 12 has arrived and there is no announcement indicating uplisting this week, the market sold the rumor as being false, and price returns back to the previous level of $3.95 to $4.30 until the next catalyst event.
5) Expected uplisting, as stated by CEO, was 60 days from early May. When this finally comes to pass, the stock should run to between $4.95 and $5.50.
6) Start of patient implants, as stated by CEO, is expected to be on or before July 4. When this is announced, the stock should run another $0.50 to $1, depending on how the PR is discussed. Assuming uplisting has occurred prior to this news, the stock should run to between $5.45 and $6.50.
The grand finale will be when preliminary results of patient trials are released. If no major negatives are released (which is not expected because the biopolymer scaffold is not expected to harm humans based on use of the same materials in other surgical implants other than the spine, and based on no negative responses in monkeys), then all that matters is having just one of 5 patients show some major metric of improvement in lower extrement function after acute injury-induced paralysis. Dependng on when the preliminary results come out - which the CEO says should be in late August - and depending on whether the reported improvement is significant - toe wiggling versus unassisted standing in one or more patients, this news, when coupled with appropriate multiple media channels, could drive the stock from the $5 or $6 range all the way to $10 or $15.
AI
