PharmaGap Inc. (CVE:GAP
) (PINK:PHRGF) stock price acted very bullishly after the board of directors decided to license their product development to another company.
GAP share price jumped up 40% during the day, although it wasn't because of common traders. The trading wasn't intense but the volume of shares that changed hands was quite impressive. 1.9 million shares were traded, which is 9 times heavier than the average turnover of 218 thousand.
The buying also pushed the stock price above the resistance at 3.5 cents per share and forced a rather bullish situation. The liquidity issue is troubling though, even though the company had news and the volume was large, the stock price moved in a choppy manner, forming large periods of idle consolidation . The price actually moved down during the day and it only opened high because of market makers.
Still, the news made a notable impact. PharmaGap said on Thursday their board of directors approved the idea to license the company's cancer drug GAP-107B8 and related patents to Clinical Value Corporation. Documents still need to be handled and approval from the shareholders received. The company expects to be done by July 31, 2012.
Because of the licensing PharmaGap will lose the executive leadership in the development of the drug. However the scientific leadership in pipeline development and testing will be retained.