PMCB Stock: 2 Big Reasons PharmaCyte Biotech Is Soaring 70% Today

Advertisement

Among the small cap companies making big moves today is PharmaCyte Biotech (OTCMKTS:PMCB). Indeed, PMCB stock is up nearly 60% at the time of writing on very heavy volume.

A scientist holding up her biotech experiment in a small Petri dish.
Source: Shutterstock

Today’s price action in PMCB stock is a welcome sight for investors in this biotech company. Indeed, shares of PMCB stock have been on quite the downward trajectory over the past six months. Since hitting a high of more than $57 per share in February, shares of PMCB stock have lost more than 90% of their value in an absolute rout.

Now, part of this decline likely has to do with waning demand among speculative penny stocks of late. The biotech sector is also one that’s seen a lot of money move into the larger cap names and away from the more speculative names like PharmaCyte recently. Investors looking to place their money on companies with long-term product pipelines appear to be focusing on the most well-capitalized biotech companies lately.

However, today’s impressive upside move in PMCB stock suggests there are some catalysts in this company’s favor. Let’s dive into two of the big catalysts driving this stock today.

Why PMCB Stock Is Taking Off Today

PharmaCyte announced yesterday that the company closed on a $15 million offering. This public offering of 3.5 million shares and warrants provides PharmaCyte with liquidity to fund its operations. Additionally, given the market capitalization of PharmaCyte at under $6 million, investors seem to like the balance sheet stability this deal provides.

Every biotech company requires a significant amount of initial capital to proceed with the necessary trials in getting its pipeline approved by regulators. Given various capitalization concerns, PMCB has been a stock investors appear to have largely steered clear from as of late. This financing clears the air somewhat for investors concerned about this potential headwind.

Additionally, PharmaCyte announced its uplisting from the OTC market to the Nasdaq exchange earlier this week. This move to a major exchange will provide more liquidity to investors. Furthermore, it signals the strength of this biotech company moving forward. Investors seem to like this move, and they are bidding up shares accordingly.

With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


Article printed from InvestorPlace Media, https://investorplace.com/2021/08/pmcb-stock-2-big-reasons-pharmacyte-biotech-is-soaring-70-today/.

©2024 InvestorPlace Media, LLC