This Nano Cap Stock Greatly Rewarded Investors On Monday


This Nano Cap Stock Greatly Rewarded Investors On Monday

There is no standard definition of what constitutes a nano-cap but by most accounts, a nano-cap is a company with a market capitalization of around $50 million or less.  Companies of this size are relatively unknown to the average investor and tend to be a risky stock to own.

However, on Monday one nano-cap stock greatly rewarded shareholders with a large return.  Naturally, investors should be careful prior to investing in a nano-cap stock, let alone one that surged in one day as the low trading volume and float does make the issue vulnerable to future losses if large investors want to cash in their profits.

Uni life Updates On Internal Investigation, Cost Reduction Measures

Unilife, (NASDAQ: UNIS) a medical device manufacturer and component supplier that focuses on injectable drug delivery systems, saw its shares soar by nearly 70 percent after the company provided a regulatory update.

Unilife undertook an internal investigation in July in relation to possible violations of law and regulations.  The company confirmed in its report on Monday that the investigation has now been completed and it has not identified any additional financial losses other than what it already communicated to investors in July.

Unilife announced it will implement a cost reduction measure to better focus on acquiring strategic customers and better expense management.  The company expanded and noted that its growth strategy consists of prioritizing active wearable injector programs with leading pharmaceutical giants, including Sanofi, Amgen, AstraZeneca.

John Ryan, Unilife’s President and Chief Executive Officer, commented, “Unilife has brought together an industry-leading portfolio of wearable injectors, a strong base of customer programs, a talented team of innovative engineers, and a disciplined and focused leadership group. We continue to be encouraged by the commitment of our strategic partners and industry suppliers as we focus on bringing these products to market with our customers’ therapies.

The company will also slash its workforce to around 140 individuals while simultaenously subleting a significant portion of its office space in Pennsylvania.

It is important to note that despite Monday’s strong surge, shares of Unilife are still lower by around 40 percent since the start of 2016 and lower by nearly 65 percent over the past year.  The five-year chart is even more concerning as the stock is lower by nearly 95 percent