Globe Immune

Kurta Law is investigating brokers who recommended shares of Globe Immune (NASDAQ:GBIM). These investments are high risk and brokers may have violated securities rules and regulations by recommending them to their customers. Regulation Best Interest requires brokerage firm representatives to exclusively recommend investments that suit their customer’s risk tolerance. 

Investors who suffered losses may be able to recover financially by pursuing FINRA arbitration. In the securities industry, investors are often required to pursue losses via FINRA arbitration rather than suing in civil court. Our experienced securities attorneys can guide you through the process, from filing a statement of claim to the arbitration hearing. 

What is Globe Immune?  

According to the prospectus, Globe Immune is a biopharmaceutical company that focuses on treatments for cancer and infectious diseases using its proprietary tarmogen platform. Globe Immune asserts that tarmogens have broad applications for combatting disease, due to their purported ability to activate a cellular immune response.  

The Offering  

The prospectus dated July 1, 2014, announced an offering of 1,500,000 shares of common stock. The initial price of the stock was $10 per share.  

In 2016, Globe Immune announced de-listing from NASDAQ and de-registration. Today, stocks in Globe Immune are worthless.  

Risks Associated with a Globe Immune Investment  

The prospectus clearly states, “An investment in our common stock involves a high degree of risk.” Any broker who recommended this investment new or should have known about the following risks. (These are only the risks Kurta Law has selected to highlight – the full list appears on page 13 of the prospectus.)  

Completed Clinical Development of Any Product Candidates  

At the time of the prospectus, Globe Immune had not completed clinical development of any product candidates, nor did it have any products approved for sale by the United States Food and Drug Administration.  

Clinical Trials  

Globe Immune was awaiting collaborators to complete clinical trials. If these trials failed, the company failed to obtain regulatory approval for its products, or failed to commercialize the products, the business would be harmed and its securities would lose value.  

Emerging Growth Company  

As an emerging growth company, Globe Immune has the option to disclose less information to its investors. Generally speaking, less information means more risk.   

Net Operating Loss  

Globe Immune disclosed a net operating loss throughout its history.  

Future Trials  

The results of future trials were uncertain. The prospectus stated that results of earlier studies and clinical trials may not be predictive of future trial results.  

Capital Needs  

Globe Immune may require additional capital in the future. If additional capital is not available, Globe Immune would have to delay, reduce, or cease operations.  

Proprietary Rights 

Globe Immune’s success would hinge on its ability to defend against any infringements on its intellectual property.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help  

Our securities specialize in cases of broker fraud and misconduct. Contact us if you believe you may have a case – you have a limited timeframe to file your claim and our attorneys do not collect a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.