The OncoSec Medical Inc (NASDAQ: ONCS) stock price soared 114% despite the company receiving a delisting notice from the listings department of the Nasdaq Capital Markets LLC regarding its breach of the listing requirements for the exchange.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
It is unclear why investors flocked to the company in droves, given that over 15.91 million ONCS shares had changed hands at the time of writing. The company's renewed investor interest mainly drove the move higher despite filing for Chapter 7 bankruptcy.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
OncoSec Medical Incorporated, a Nevada corporation, filed a voluntary petition for relief under the provisions of Chapter 7 of Title 11 of the United States Code, 11 U.S.C. 101 et seq. in the United States Bankruptcy Court for the District of New Jersey on June 14, 2023.
The Chapter 7 bankruptcy filing will lead to the appointment of an administrator to liquidate all of the company’s US assets. In contrast, the assets of its Australian subsidiary, known as OncoSec Medical Australia Pty, Ltd., will be liquidated under Australian law under a Creditors’ Voluntary Liquidation.
OncoSec Medical is also facing a delisting from the Nasdaq Capital Market because its share price has been trading under the minimum bid requirement of $1.00 for thirty consecutive trading days, and the overall shareholder equity has been below the required $2,500,000 for an extended period.
As an astute investor, I would stay away from OncoSec Medical shares, given that it is facing bankruptcy proceedings and is also at risk of being delisted from the Nasdaq exchange. However, the latest rally in its share price could allow it to dodge the delisting process.
Its prospects are only promising if investors want to turn it into a meme stock. The only hope for the company is for a meme stock rally to ensue and lift its share price higher, but then, there are still the Chapter 7 bankruptcy proceedings to deal with.
*This is not investment advice.
OncoSec Medical (ONCS) stock price.
The OncoSe Medical (ONCS) stock price soared 114.03% to trade at $0.45, from Thursday’s closing price of $0.21.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.