ProMetic Life Sciences (TSX:T.PLI
, Stock Forum
) investors got a lesson in the pitfalls of a streaking stock this morning when T.PLI, hot on the heels of a 15% jump Monday to a 52-week high of $1.14, announced a $20m common stock share offering of $0.90, bringing about a 13% drop.
Shares in the company were being traded at $0.90 three days prior.
ProMetic has been a year-long success story on the charts, moving steadily from a low of $0.13 a year ago on an 888% rise to $1.14 yesterday, and even with the $0.90 offering putting a damper on day traders, the stock still appears to be holding above the line at $0.99 in early trading, with long time investors taking the chance to add to their holdings.
Volume on the day, at the time of writing, was 6,477,161, leaving T.PLI among the most heavily traded stocks on the exchange.
The company announced in September “that it has successfully completed the required GLP toxicology studies performed by a certified contract research organization confirming that Prometic's lead drug candidate, PBI-4050, is safe to advance into clinical trial stages.”
"These positive results enable us to commence the clinical program to confirm safety in humans" stated Pierre Laurin, President and CEO of ProMetic who added "this is expected to be initially performed in healthy volunteers this year with enrollment of patients expected to begin in early 2014 to demonstrate efficacy".