Shail..... just throwing this out there as one possible explanation that I can personally back up as far as my investment $'s go...
I personally invested in APDN a little over a year and a half ago after some heavy marketing/touting/pumping by a newsletter writer from Agora Financial. There was some heavy expectation for the stock to pop after approvals from the DOD came through with some very high dollar contracts. The stock price had vaulted to $0.29-ish/share. Months later, the stock had trended down and those high-dollar contracts were no where to be found yet.
As the share price drifted down toward $0.12/share, I had continued to follow and research the company. I was cautiously aware of the outstanding share count as well as the 1.3 billion authorized shares. That is a substantial number of authorized shares for a company with little to no revenue to be able to overcome in order to move the company's market value up substantially. But I was cautiously optimistic that, provided further DOD mandates came in to support larger contracts... or other commercial industries opened up such as Pharma, the company could move quickly in it's profitability and share price. I averaged down until I owned roughly 267k shares at around something like $0.14/share.
When the R/S was recently announced, I choked. I've watched penny-stock companies go through R/S scenarios before... with the onslaught of shorting to follow... and none of the promised revenue to follow to gain the interest of those institutional investors. I've even followed a company (CNES - Conectisys Corp) list on the NASDAQ following a RS, only to end up with doors closed and only management with large pocketbooks due to substantial salaries during the entire 9-year or so journey of the company.
Thus... with the R/S announced... followed by a disproportioned reduction in the authorized shares for APDN, I decided the company had decided to remove any way for me to vote to control that dilution down the road. I listened to the CEO state they had no intention to dilute the company, post RS. Yet, he said the company would only use the dilution for legit measures. If I were the CEO... a few months from now, my company was now without further cash to operate, a new capitalization and further dilution would be considered, "legit" and completely justifiable in the mindset of management. However, since the authorized shares are being reduced disproportionately, I would have no say in what takes place after this vote at the end of the month. That lack of ability to voice my opinion with my vote, coupled with the lack of significant increase in revenue to date (in relation to expenses...not % increase qtr to qtr) gives me great concern that a dilution will be forthcoming either by private placement of new shares or via another stock offering by the company. Regardless, I was concerned that a significant reduction in share price would not only dilute my current investment... but make it even more difficult to bring in enough profit to offset the outstanding shares (post dilution) to get the market valuation back up to anything worth of my investment dollar's time.
So... I sold all 267k shares for a little over $0.11/share. I took the loss... but still absolutely love the company's product. Thus, I follow it closely and watch to see what happens with the RS and potential institutional investments... not to mention, potential new mandates or new commercial ventures into pharma, textiles, etc. If the company begins to easy my concerns about it not being able to "pull it off".... then I'll come back in rapidly to the tune of around $50k and see where it takes me.
I think there are plenty more investors.... of a much larger sort...who are also concerned and waiting to see what transpires with profits over the next few quarters, as well as this RS/uplisting/potential dilution.
All above is just my very personal take on it. But the first thing I learned in my Financial Analysis class long ago was, never become emotionally invested in a company you've pumped dollars into. It took me a while to learn that little gem of a lesson. However, I'm trying to put it into practice with APDN.
I don't buy the rumor of a halting tomorrow due to something in Australia. If that were remotely true... there would be enough out there who already know of it's legitimacy to keep the stock price steady... or even trending higher.
Regards,
Kav
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