ENUMERAL BIOMEDICAL COM USD0.001 (OTCMKTS:ENUM)
ENUMERAL BIOMEDICAL COM USD0.001 (OTCMKTS:ENUM) rallied 6.35% after reporting second quarter financial results and affirming plans to pursue a range of strategic transactions for the sale and disposition of its assets. The company is in the process of winding down its operations having hit rock bottom in terms of cash needed to continue operating as a going concern.
The curtain is closing down on ENUMERAL BIOMEDICA COM USD0.001 (OTCMKTS:ENUM) after a poor run in the stock market in recent months. The stock opened the year at $0.15 a share before rallying to highs of $0.19 a share in March. Ever since, the stock has been trading in a downward trend as investors continue to question its long-term prospects.
The company is winding down its business, Net loss having soared to highs of (-$3.13) million compared to a net loss of ($1.3) million reported last year.
ENUMERAL BIOMEDICA COM USD0.001 (OTCMKTS:ENUM) cash balance has tanked from highs of $3.16 million as of the end of last year to current lows of $576,307. The lack of sufficient funds means the company cannot be able to finance its day to day operations prompting the winding down of business.
“As the Company winds down its operations, it continues to consider possible transactions pursuant to which Enumeral may sell its remaining assets […]. If Enumeral is unable to effect one or more such transactions, the Company may be compelled to commence liquidation or bankruptcy proceedings.” Enumeral in a statement.
The company finds itself in the current mess after consecutive quarters of losses. Revenue in the second quarter decreased by $1.3 million to $189,741. Enumeral Biomedical attributes the decrease to a license agreement with Pieris Pharmaceuticals Inc. (NASDAQ:PIRS) and a study agreement with Merck.
ENUMERAL BIOMEDICA COM USD0.001 (OTCMKTS:ENUM) will not carry any study agreement with Merck & Co., Inc. (NYSE:MRK) having already terminated its research and development function. The company has also sold its laboratory equipment. Research and development expenses in the quarter was down by $357, 463 due to a decrease in payroll and personal expenses because of lower headcount.
Winding down expenses in the quarter came in at $1.1 million associated with the extinguishment of restricted cash in connection with the operating lease. ENUMERAL BIOMEDICA COM USD0.001 (OTCMKTS:ENUM) also incurred losses on the auction of its laboratory equipment.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.