Sellas Life Sciences SLS Stock News

Sellas Life Sciences Group Inc (NASDAQ: SLS) is having a strong start to the trading session this morning, with gains of more than 6% in the premarket. However, with no news out, many are wondering why the stock is headed up. Nonetheless, traders are onto something here. Here’s what’s happening:

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Why SLS Stock Could See A Big Bounce Today

Sellas Life Sciences has been trading with a ton of volume lately. However, the price has been held down. So, what’s the deal?

Well, it all has to do with a fund raise that was announced on June 18, 2019. The company raised about $13.5 million through the sale of newly issued common stock and warrants to purchase common stock.

The truth of the matter is that warrants are known to hold the value of a stock down when exercised. That’s exactly what seems to have been happening with SLS stock. As investors exercised warrants, volume was high, but prices were low.

However, the warrant pool is starting to dry up, and traders are starting to take note. As the warrant pool dries up, the pressure that has been leaning on the stock in recent sessions will be released. As such, the value of SLS shares could bounce upward, generating strong short term gains for those that time the move correctly.

Looking Ahead

Looking ahead, Sellas Life Sciences and its investors have plenty to look forward to. Let’s not forget that back in early June, the company released positive data from a Phase 2b of Nelipepimut-S (NPS) plus Trastuzumab in patients with triple negative breast cancer.

The data suggest that the treatment led to a positive immune response, crucial data that will support the potential approval of the drug. With the combination treatment still under development and showing promise, there’s a strong chance that we will see further positive data read outs, development, and regulatory updates from SLS ahead.

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