Shares of Resverlogix climbed 23.9% last week on the TSX where the stock trades under the symbol RVX. On the U.S. side where shares trade OTC with the symbol RVXCF the gain was 21.8% However take note of the fact that most of the trading takes place on Canada's big board exchange. OTC volumes have averaged roughly 7,500 per day over the past 3 months, while in Canada RVX trades ten times that number. (Numbers as per Yahoo Finance)
Here's the chart showing RVX.TO from Friday Sept 29th's close of $1.46 to this Friday Oct 6th's close of $1.81
So what caused the sudden jump? Quite frankly I have no earthy idea.
The only news item was on Monday October 2nd announcing the company's AGM is to be held on December 12th 2017. But even there it noted that the company had to receive an extension with respect to the meeting from the Toronto Stock Exchange. That's hardly surprising given that in a news release of August 28th just passed it was stated that the company was relying on a financial hardship exemption and that the board of directors had unanimously determined that the company is in: "serious financial difficulty". Here's that PR from the company's own website:
Now to be clear, full disclosure and all that...I am a shareholder in Resverlogix. However I will do my best to avoid falling into the trap of trying to put lipstick on a pig. I am very bullish, but that is simply because I have an upside down way of looking at things. Contrarians by definition will at times see bad news as good and good news as bad.
So how bad do things look in the straight up non-contrarian world? Pretty damn bad if you ask me. If the company's own communications are any indication, then Resverlogix looks like a company in complete and utter disarray.
In baseball they talk about making the simple plays. Well Resverlogix of late can't even get the simple things right. On September 26th 2017 their Sr VP of Business & Corporate Development gave a presentation at Biopharm America in Boston. The only problem? When the company published the information to their own website they got the date wrong, having Mr. Lebioda presenting on the 27th instead of the 26th. Ugh
Small potatoes? It would be if this kind of mistake wasn't becoming almost a regular event. After publishing that the company would be presenting at the Rodman and Renshaw event on September 11th 2017 the decision was made to skip it. Did the company notify shareholders of the decision to miss this opportunity? Nope. The only explanation from the VP of IR came after the fact when I was told via email that the cancellation was due to a scheduling conflict.
In a later phone conversation that same Investor Relations VP actually claimed the company was under no obligation to disclose the cancellation because the company's attendance at the event had not been "widely disclosed". That is laughable considering the event was published to the company's website. How much more widely can something be distributed than by publishing it on the World Wide Web???
And it wasn't the first time the company had skipped out on investor presentation, having done the exact same thing in May of this year in Paris at BioEquity Europe. I could go on with the Power Point slide presentations with wrong information or slides completely missing. Disarray? Incompetence? That's for each individual to decide.
So against this back drop of a company that proclaims itself to be "in serious financial difficulty", that can't get even the most simple things right in terms of corporate communications. Against this ugly back drop we see the PPS climb over 20% in just one week on higher than average but still very tepid volume.
Why???
The most simple conclusion is that in spite of all the Fear Uncertainty and Doubt....that there were still more than enough buyers looking to acquire shares than were looking to unload. Its a reasonable conclusion in my opinion, but I don't know what the rationale of those buying is. In fairness I have been continuing to add share purchase warrants myself, but I haven't added any shares since RVX was trading in and around $1.35.
Maybe the company's phase III trial will get a thumbs up on the anticipated Futility Analysis due any time now. Perhaps they'll soon be able to announce that they've secured sufficient financing to lift the cloud that has them disclosing being "in serious financial difficulty". Maybe they've got interest from a big player for some type of licensing deal or partnership.
Lots of perhaps, ifs and maybes. But last week, buyers didn't seem to care. Do your own DD of course and comments are always welcome.
One last note, from a technical perspective the chart is looking overbought in the near term, so barring some positive news I would not be surprised to see the move higher stall or pull back at least some.
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