Why TapImmune (TPIV) Stock Is Skyrocketing… Again

Shares of the immuno-oncology company soared on news it was raising capital.


Shares of TapImmune (NASDAQ:TPIV) are up nearly 60% as of 1:34 p.m. EST after the company announced it raised a fresh round of capital by selling stock and warrants in a private placement.

The early-morning press release from TapImmune notes that the company entered into an agreement with certain institutional and accredited investors to receive $70 million in gross proceeds from the sale of 17,500,000 shares at $4.00 per share. Additionally, TapImmune will issue warrants to purchase 13,125,000 shares of TapImmune common stock at an exercise price of $5.00 per share that will be exercisable for a period of five years from the date of issuance.

In ordinary markets, investors might be disappointed that a company is raising money by selling shares worth $5.95 each for $4.00. However, the capital raise gives TapImmune some semblance of legitimacy.

On Wednesday last week, WBB analyst Stephen Brozak upgraded TPIV from Speculative Buy to Buy with a $5.50 price target, sending shares of TPIV surging 24%. (To watch Brozak’s track record, click here)

Brozak wrote, “We have previously commented in a note our continued interest in TPIV’s strategic move to merge with Marker, as the clinical assets carry data that cannot be overlooked, and the proposed management, advisory, as well as directorship of the combined company place prominence on TPIV to be a leader in the cell therapy space. We are reiterating that thesis in this report and again look with greater enthusiasm towards the closing of this transaction and the development of a new company. We therefore raising our Rating from Speculative Buy to Buy.”

“We are updating TPIV based on the successful closing of the merger agreement with Marker Therapeutics, recognizing the personal know-how and product candidates anticipated to come into the combined company thereby providing additional value to the new entity. Using a sumof-the parts valuation, we evaluate potential revenue streams from the TPIV200 ovarian cancer programs to be at $5.00 a share and Marker product candidates derived from the MultiTAA platform to be $6.00 a share. With 12.8 million shares currently outstanding and twice that amount at closing, we arrive at a twelve-month price target of $5.50,” the analyst continued.

 

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