The Resapp Health Ltd (ASX:RAP) share price has rebounded 64% to $0.115 after yesterday's devastating 77% decline.
Management announced during a conference call this morning that they felt that the data gathered during this trial was not reflective of their diagnostic app's potential. Furthermore, it was thought that the bronchiolitis and potentially also the asthma results from this study may have been good enough to submit to the FDA, which could have prompted the bounce in the company's shares:
Volume was hugely elevated today and yesterday, at around 100x average indicating that the company is being hotly traded.
With $8 million in cash and a ~$5 million annual burn rate as of the most recent quarterly report, Resapp has funds for a while and may not need to immediately raise capital. However, at least one capital raising looks to be on the horizon, and there is still an open question around whether the company can turn out a commercially successful product. I think Resapp is high risk, and would give it miss for now.
