Bio-Path Holdings Inc (NASDAQ: BPTH) is making a run for the top in the market today. However, with no press releases issued by the company, many are wondering why the stock is headed up. We believe that we’ve found the reason. Today, we’ll talk about:
- Why BPTH stock is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
BPTH Stock Is Climbing
As mentioned above, Bio-Path Holdings is having a great day in the market today. However, the company hasn’t issued any press releases, leaving many wondering what’s going on. The reason for the gains is simple.
BPTH filed a form with the SEC requesting that it consent to a withdraw of a previously filed Registration Statement. The registration statement was filed with the SEC via form S-1 on December 27, 2018.
This is incredibly positive news for investors as the Registration Statement surrounded a highly dilutive offering. BPTH said in the filing that it has elected not to pursue the sale of securities at this time. Here’s a key snippet from the filing:
The Company submits this request for withdrawal because the Company has elected not to pursue the sale of securities pursuant to the Registration Statement at this time. The Registration Statement has not been declared effective by the Commission, and the Company hereby confirms that no securities were sold or will be sold under the Registration Statement. The Company also acknowledges that no refund will be made for fees paid to the Commission in connection with the filing of the Registration Statement. However, the Company requests, in accordance with Rule 457(p) under the Act, that all fees paid to the Commission in connection with the filing of the Registration Statement be credited to the Company’s account for future use.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Bio-Path, the news proved to be overwhelmingly positive.
After all, the withdraw of the Registration Statement means that the company will not be selling newly issued shares, diluting the current investors’ value in the shares that they own. So, it’s not surprise to see that excited investors are pushing the stock for the top in the market this morning.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:23), BPTH is trading at $21.10 per share after a gain of $5.45 per share or 34.82% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BPTH. In particular, we’re interested in following the company’s continued development of its pipeline. We’re also interested in seeing if the company comes up with a more creative way to raise funds. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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