Hemispherx Biopharma corrects reports that mistakenly inflated the value of its private placement

Hemispherx Biopharma Inc (NYSEMKT:HEB) stepped in to correct the record Friday regarding two erroneous reports overstating the value of an Equity Distribution Agreement on July 22.

The reports, which stated that the company was raising $70 million through a private placement deal with Maxim Group LLC, were generated by algorithms that automatically publish news from 8-K filings.

What the reports missed was a supplementary agreement that capped the value of the shares Maxim could sell at $4.5 million.

After the fact, Hemispherx demanded and received retractions from the outlets in question, Sagient Research and StreetAccount.

READ: Hemispherx Biopharma’s Ampligen treatment aims to disrupt the cancer market

“The value we are building at Hemispherx Biopharma is based upon five ongoing clinical trials, and it’s unfortunate that these computer-driven reports mischaracterized our SEC filings and possibly affected the trading in our common stock,” CEO Thomas Equels said in a statement.

On July 22, possibly because investors expected a highly dilutive measure, the company’s stock fell from $3.95 to $3.13.

In premarket trading Friday morning, Hemispherx Biopharma shares were up nearly 30% to $2.90.

Hemispherx is an Ocala, Florida-based company focused on immuno-oncology. It’s lead drug Ampligen is currently being evaluated in trials for the treatment of certain types of ovarian, colorectal, prostate and breast cancers.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Story by ProactiveInvestors