Something to Keep an Eye on: $ONTX (Short Term, Special Situation)

(Short Term, Special Situation — High Risk)

Saw this one around on the message boards several times. Seems to have a relatively large following for a microcap, with a surprisingly enthusiastic shareholder base.

Some of the links from this website have been shared on the stocktwits ONTX message board a few times, and the amount of traffic it would drive to the site always left you in surprise.

Wednesday, 6/10/20, at 5:28pm ET

The board expects that shareholders will postpone a previously scheduled reverse split in anticipation of topline data from their “pivotal Phase 3 INSPIRE trial”.

They are currently in non-compliance with the Nasdaq’s minimum bid price rule, which suggests that the company believes that they can get the price above $1.00 naturally.

This is very reminiscent of what happened to Fuel Cell in December of last year before it went parabolic..

Pictured below is a screenshot of FCEL’s proxy card from November.17th, 2019, and buried in the middle, you should be able to see a proposal for a reverse split.

‘DEFA14A’ on 11/27/19

But with only 30 days left to regain compliance, FCEL suddenly canceled the split.

ONTX also filed an S-3 on May 15, 2020 that took effect on May.18th

Although it seems highly unlikely that ONTX is capable of coming anywhere close to replicating the kind of move that we saw from FCEL back in December, it still looks like it has the potential to break above $1.00.

**DISCLAIMER** This is all my opinion, and I  am not a financial adviser. You should consult a financial adviser before making any  decision with regard to publicly traded securities.  This company carries an extremely high degree of risk, and you should not use this information as the basis for an investment decision. You should consider this information as similar to personal insight from a peer/friend/acquaintance, and thus it should (obviously) not be the primary source material for basing an investment decision, because similar to any opinion from a peer/friend/acquaintance, it could be completely and utterly incorrect! Good luck and happy trading everyone****

UPDATE: June.23rd, 3:31am

ONTX stocktwits banter archived the morning before the split..

UPDATE, June.26th after market close
Reverse spit was canceled. Stocktwits reactions archived

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