Biotron Limited (ASX: BIT) crashed 17.5% after its bosses in-cashed their underlying options when stock was trading at its highest peak.
On 25 October 2018, Managing Director Dr Michelle Miller, Chairman Michael Hoy and Director Robert Thomas exercised their options to purchase Biotron stock at a pre-determined price when Biotronâs share price was mounting massively on stock exchange.
In this strategy of making the most out of the surge, Mr. Thomas sold 3.5 million of his already held shares for $818,106 after converting 100,000 5 cents options worth $5,000.Â
Whereas, Managing Director Dr. Miller acquired 5 million shares by exercising option at a pre-decided option price of 15cents and 18cents each, translating the total purchase price of $840,000. But, immediately she sold down her 3.5 million of those new shares on-market at $938,000, lining an attractive profit of $98,000.
Biotronâs share price has jumped as high as 1011% over the past one month after the company announced positive clinical trials results of its lead drug BIT225. The objective of this drug is to treat HIV-1 and Hepatitis C virus infections.
Since the start of October, stock price has been adding to the September rise on the good news of positive trial results. The improvement was such that stock price shot up from 1.9 cents on 27 September to set new high of 44.5 cents before settling at 16.5 cents today.
Chairman Michael Hoy seized the opportunity by first paying $74,782 to exercise approximately 1.2 million options worth 6 cents each and then selling the completing lot for $286,666, lining his pocket with the thick profit of $211,884.
Meanwhile, the management informed that the detailed data of phase2-trial of its flagship drug BIT225 is expected to be presented at scientific conference in late 2018 or early 2019. The drug targets to cure most infectious category of HIV, HIV-1, which remains hidden in reservoirs, leading to chronic, life-long infection. Biotron told that BIT225 has potential to be used in combination with other antiretroviral drugs to eradicate HIV-1 reservoirs.
Since China is one of the worldâs largest populations of people infected with HCV, Biotron is looking forward to explore regional partnering opportunities in China for the BIT225 Hepatitis C (HCV) program.
Ahead of sell down undertaken by Directors, Biotron share price plunged 17.5% to close at $0.165 on 26 October 2018. The stock has witnessed a jump of 634.94% over the past one year.
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