Scopus BioPharma Inc. (SCPS), a biopharmaceutical company, has seen a gain of 8.05% in the premarket trading session. As a result, SCPS stock is trading at $4.43 at the time of writing. The surge has come after Scopus announced on Friday that its retaining council would investigate the unusual market activity. On Friday, SCPS stock closed the day at $4.1 after declining 1.2% during regular trading hours.
SCPS focuses on market manipulative activities
SCPS announced in the late hours of Friday that its retaining law firm, namely Boies Schiller Flexner LLP, would soon begin a market manipulation investigation. The company said that during the recent past, the SCPS shares have come under attack by some abusive short sellers. During that period, the company said, the short volume ratio of its shares had reached about 70%. As a consequence, 25% of the company’s market capitalization had been wiped out. Despite several positive developments in recent times, the downward pressure on the trading price of SCPS common stock remained consistent and showed persistence. Scopus BioPharma said that it would not stand idly by, while the company and its shareholders are bearing the brunt of short selling. The investigation by Boies Schiller Flexner would be led by some former federal prosecutors. They include former Assistant United States Attorneys for the Southern District of New York who carries extensive experience in the prosecution of securities crime and fraud.
Q2 2021 financial results
On 13th August, SCPS reported the unaudited quarterly results for the second quarter of the fiscal year 2021, which ended 30th June 2021. According to those, the company had cash and cash assets of $6.26 million on 30th June. The total current assets in possession of the company stood at $6.80 million, while the total current liabilities stood at $8.79 million. The total operating expenses bore by the company during the period stood at $15.28 million. During the equivalent quarter of 2020, the total operating expenses were $7.94 million. The net loss suffered by the company during the quarter remained at $15.62 million. During the equivalent period of 2020, the net loss of the company remained at $8.02 million. The net loss per basic and diluted share stood at $0.97 during the quarter. During the comparative period of 2020, the net loss per basic and diluted share was $0.62.
What’s ahead for SCPS?
Recent statistics have not been on the side of SCPS stock. The stock has declined by 41% during last one quarter and 72% during last 9 months. The prime reason for that remains the alleged manipulation activities by short-sellers. But with the company focusing its shift toward that issue, it is hoped that SCPS stock would see positive times in the future.
