Upside move I see Claritas reaching a share price of ten cents in the next few weeks because there will be a confluence of events likely to happen in the very near term:
1. Reverse split: it has been exactly one month since the shareholder meeting that approved the company's request to undertake a reverse split. It takes time to go through the approvals at the exchange for a reverse split but probably no more than a month. It seems imminent then that this could take place. And when it does the shorters will be done with. Bigger investors can come in and push the stock into a range of 50-75 cents per share.
2. Funding: the Company has talked about a rebate from Australia. It has been several months since the last press release about this. It should not be surprising to see the announcement of this funding in the next few weeks. With all the mention at the shareholder meeting of future clinical plans, it stands to reason that the Company is moving to aggressively shore up its balance sheet so that it can move quickly to advance R-107. If there are announcements of rebate funding plus an equity or debt financing event, the Conpany will be in fine condition to erase any lingering debts and to propel itself into clinical trials. Such an announcement could happen any day. It would electrify them share price.
3. Covid: Whereas a few months ago the prevailing sentiment was that the pandemic was ending, there is a massive fourth wave due to the delta variants. Lockdowns are happening in Australia, India, and other venues where the disease is roaring back. Today Israel announced that the Pfizer vaccine has weak efficacy against the delta variant and doubly vaccinated individuals in Israel and the UK are now dying from Covid infection. R-107 is the only therapy in the offing that can kill the virus AND treat its pulmonary hypertensive effect in the lungs which results in heart failure and death.
4. Pulmonary hypertension: In a matter of weeks it would seem from the press release that the Company will begin Phase 1 trials of R-107. This will vault Claritas from a preclinical entity to a clinical stage company. This shift should have a profoundly positive impact on share price, since clinical stage companies are much less risky and they attract top-tier institutional investors.
With all this poised to happen in the next few weeks, the share price presents a once in a lifetime opportunity to buy in cheap into what will be just a superlative biotech company. Yes it has been a long time in coming, but I think patience will be well rewarded.