Cancer Therapeutics Inc (OTC:CTHP) kicked off with a serious sell-off on Thursday on confirmation of a support break.
Pushed against the support level for of $0.035 the price tested it two times over the last half a year. After breaking down on Tuesday, the price consolidated there for the day as bulls and bears stood in ave of before the confirmation of price collapse.
The move was made on one of the largest recorded volumes for the year. With over 3.3 million shares traded it was well above the 50 exponential average of 500 thousand.
The fundamental reason of the big move was the creation of Class A restricted stock. 200 shares were initially sold to the company’s CEO Chene Gardner as a compensation for his annual service and giving him 70.39% voting control. The share are currently not convertible to common stock.[BANNER]
Cancer Therapeutics has to resort to stock compensation because of their weak financial position:
- 455 dollars in cash as of February 28, 2010;
- no revenues;
- 1973% stock dilution over the last year, recorded in their latest 10-q filing;
After selling off their operating assets back in 2007 the company remains registered as a shell, carrying out no business operations. The company has no way to build value for the shareholders except through a reverse merger with operating business.
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