They met, chatted, and have come back with resolutions. This is the story with Threshold Pharmaceuticals, Inc. (NASDAQ: THLD), the biotech company that has seen its share price dip having hit a 52-week high of 1.48 not so long ago. Recently the company announced that at a stockholders meeting, the resolution to accept all proposals relating to the merger with Molecular Templates, Inc. have been approved.
Mergers are always good, of course; especially when they involve a biotech player like THLD. This is why stockholders also approved an equity financing drive that will see an additional $40M added to the company coffers. The cash will come in handy, no doubt.
On Tuesday the stock responded to the news with sharp movement north. After opening at 0.50, a pittance compared to the 52-week high of 1.48, THLD rallied to a high of 0.55 before pulling back to 0.47. In the end the stock reached a high of 0.55 on 1.42M volume closing up 8% to finish the day at 0.54. That was pretty good going considering the fact the stock had reached a low of 0.47.
The big lift on Tuesday might be the lift investors are looking for since THLD as a stock is trading well YTD – currently t 22%. Not bad at all and other factors are creeping in too; all this makes THLD look good and attractive to short term investors who will of course see the DMA 20 trending north at 13% as a good thing. The DMA 50 also telegraphs something positive. That figure is up 19% so investors who are looking for some upside potential and opportunities for scraping something off the top in the medium term will be happy.