Greenwich LifeSciences

Kurta Law is investigating brokers who recommended shares of Greenwich LifeSciences (NASDAQ:GLSI). Investors who suffered losses may have a case for an investment fraud attorney, especially if they specified that they wanted low-risk or moderate-risk stocks. Greenwich LifeSciences investments came with a high degree of risk. The Financial Industry Regulatory Authority (FINRA) defines unsuitable investments as investments that fall outside of an investor’s risk tolerance, among other criteria.  

If you believe you suffered losses as a result of broker misconduct, contact Kurta Law today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.  

The Offering 

The prospectus dated September 24, 2020, announced that Greenwich LifeSciences conducted an offering of 1,260,870 shares of common stock. The prospectus is the document that the Securities and Exchange Commission requires offerors to submit when they register their stock. This document allows investors and brokers to evaluate the risks associated with an investment.  

About Greenwich LifeSciences  

The prospectus describes Greenwich LifeSciences as a biopharmaceutical company that is developing GP2, an immunotherapy drug that is meant to prevent the recurrence of cancer following surgery.  

Risks Associated with Investing in Greenwich LifeSciences  

The prospectus clearly discloses the following risks, which any broker should have known about or was negligent in not knowing.  

Clinical-Stage Drug  

At the time of the prospectus, Greenwich LifeSciences did not have any products approved by regulatory authorities. As a clinical-stage biopharmaceutical company, Greenwich LifeSciences required substantial capital to complete more clinical trials. The company was not profitable and had incurred significant operating losses. The disclosure states, “We do not expect to generate revenues for many years, if at all.” 

Raising Additional Capital  

The prospectus states that raising additional capital may cause dilution to existing shareholders. Additional funds may not be available, or on terms that are acceptable to Greenwich LifeSciences. Without funds, they may be forced to terminate clinical trials.  

Doubt Concerning the Company’s Ability to Continue without Financing 

The prospectus states that as of June 30, 2020, and December 31, 2019, Greenwich LifeSciences had $6,835. At the time of the prospectus, Greenwich LifeSciences had no revenue and did not know when it would be able to generate revenue, or if it would ever become profitable.  

Taxes  

Tax laws that have benefited Greenwich LifeSciences may expire or change in a way that adversely affects its tax position.   

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 attorneys have excellent experience representing investors who have lost money on unsuitable investments. Kurta Law securities attorneys do not collect a fee unless we win your case – we will discuss your case at no cost to you. Read our testimonials and contact us if you believe you may have been the victim of broker fraud or misconduct. Call (877) 600-0098 or email info@kurtalawfirm.com.