OXIS International, Inc. (OTC:OXIS) Bounces Aimlessly Up and Down
21 Oct 2010

OXIS International, Inc. (OTC:OXIS) share price is bouncing up and down within the trading channel and yesterday it got stuck right in the middle of it. As the company keeps printing new shares, but still has no cash to start the realization of its new business model, OXIS stock cannot decide which way to take.

The stock price jumped 14.13% up yesterday on a volume of 1.62 million shares traded and the market closed at $0.105, which is exactly the average value of OXIS recent price range. Technically, the share price could bounce up to the upper price band, but the shares remain speculative and extremely hyped. The market cap of over $12 million is an incredible value for a company with almost ten times more debt than assets and no revenue generating operations currently.

After its reorganization, OXIS now focuses on the development of nutraceutical products in the field of oxidative stress reduction and holds the rights to four therapeutic classes of compounds in that area. Unlike these products that obviously don’t sell, OXIS shares of common stock seem well accepted by the company’s lenders and service providers.

During the six months ended this June, the company diluted its shareholders by almost 77%, without even raising any substantial cash. A total of 46.1 million shares of common stock were issued for retirement of debt valued at $1,33 million. The $0.0288 price per share that those creditors got was highly beneficial as compared to the current levels. Further 3 million were issued upon exercise of warrants and 2.2 million shares were issued as compensation for services.

The latest “news” that was heard from OXIS is probably also a paid service. In the middle of October, the CEO and the President of OXIS gave a radio interview for StockGoodies.com. That website appears to be a kind of a stock promoter, as it provides consultation and market awareness services for publicly traded OTC companies. In June this year, one of the featured companies has paid $100,000 for six months of such services, while another paid with shares.

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