Usually for a small cap or micro-cap stock to double, it is because of a buyout. A move today in Vermillion, Inc. (NASDAQ: VRML) has the shares up over 100% after the company reported that the American Medical Association (AMA) Current Procedural Terminology Panel voted to approve the company’s application for a Category 1 CPT code for its OVA1® test. The test is designed to help differentiate benign versus malignant ovarian masses.
Vermillion noted that there has been an unmet clinical need for this triage test. The company also noted that it will help streamline claims processing and accelerate further coverage and adoption by private payers. The AMA recently disclosed the new code on its website, which will become effective January 1, 2013.
What is amazing is that the gain of 114% to $2.85 is on 9 million shares. That is about 80-times normal trading volume. Yahoo! Finance also noted that the 52-week trading range is $0.97 to $7.60 and its market cap after this double-plus is still only almost $43 million.
We do not know if the company will use the opportunity to raise capital or not.
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