CytoGenix, Inc. (PINK:CYGX) Steps Up and Down After Months of Silence
16 Sep 2010

A day after two large jumps led CytoGenix, Inc. (PINK:CYGX) stock to its new 52-week high, the next large jump was downwards. The stocked tanked 51.66% yesterday and closed at $0.0701.

It is not clear if the the action was due to investors’ hopes that the biotechnology company has found a mystic way to further conduct animal tests of its vaccine candidates without needing any cash, or to some traders noticing that the SEC filing from the middle of last month could hide some potential.

A month ago, CYGX has created a new subsidiary to, surprise, surprise, “identify, evaluate and develop biological based technologies for the growing energy sector”. There was some market reaction on the news, but not comparable to the one on Tuesday as a press release announced positive results from a study, in which mice were immunized with the company’s avian influenza vaccine candidate and did not die.

The latest financial data available for CYGX is for the quarter ended last March and it is not to be relied upon. There was a still unresolved dispute between the SEC and the company on the incorrect reporting of some impairment provision that has obviously impacted the annual 2008 and the subsequent financial results.

The published correspondence with the SEC gives, however, some valuable insights into the company’s financial condition by March this year. In a response to the commissions’ comments on the above mentioned issue, CYGX CFO states that “The Company does not have the thousands of dollars that will be required to file the redlined correspondence responses to your comment letter(s) and then a final live version”.

So, obviously CYGX was out cash at that time and could not even afford to make proper financial reports and file them. Two of the many questions could be: Where did they get the money for their tests, and how do they plan to enter the capital intensive renewable energy sector without “having any financial resources”?

1 Comment
1 Comments
  1. The experiments were ongoing from previous agreements. The results were finally documented on and then pr’d after Lex Cowsert and company methodically drew up a multistage plan to bring this dinosaur back to life. The money is new and its coming from investors that are realizing the potential of their ssDna technology plus a few clever niches in the bioenergy sector. Patience will make early investors wealthy by end of 2011.

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