Soligenix, Inc. (OTC:SNGX) Finally Gets Remarkable Action
17 Feb 2011

Soligenix, Inc. (OTC:SNGX) downtrend has been paused for a while, but the news from this year about the appointment of a new Senior Vice President and Chief Medical Officer and about SNGX finding out another non-dilutive financing method did not receive the deserved attention.

The unseen record volume of 5.46 million is not explainable by any official announcements today, not counting maybe the corporate presentation of Soligenix from this Monday. That huge volume made the share price of SNGX stock surge up o $0.170 during the session and then close at $0.17 without a change from Tuesday close. Some traders might find SNGX chart still bullish today, but it seems the stock is already optimistically price relative to the company’s actual results and assets and the positive news cannot raise its value.

At the end of January, Soligenix appointed Kevin Horgan, M.D. to serve as its Senior Vice President and Chief Medical Officer. Along with his base annual salary of $290,000 and the additional bonuses, he also got stock options to purchase 1,250,000 shares of the company’s common stock. Pricing also seems fair: the market share price of SNGX on the respective date, or $0.172 has been set as exercise price for the stock options. That should serve as strong motivation for the new member of the management to bring the company and its stock back on track, but could take more time than some investors are willing to wait.

Financial results for Q3 of 2010 were not surprising and SNGX is still in a strong financial position by at least the end of the year and has still no long-term debt. Among the positive news last month was also the receipt of $245,810 financing from the State of New Jersey’s Technology Business Tax Certificate Transfer Program. The program enables approved, unprofitable biotechnology businesses to sell their unused Net Operating Loss Carryovers and unused Research and Development (R&D) Tax Credits for at least 80% of the value of the tax benefits to unaffiliated, profitable corporate taxpayers in the State of New Jersey. The participation in the program is another non-dilutive method together with the grants to secure funds for research and development.

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