Opexa Therapeutics 

Kurta Law is investigating broker recommendations of Opexa Therapeutics (NASDAQ: OPXA). Opexa Therapeutics investments came with a high degree of risk, making them unsuitable for many investors. The Financial Industry Regulatory Authority (FINRA) defines unsuitable investment recommendations as recommendations that fail to consider essential facts about an investor, including their risk tolerance. The prospectus for this offering states, “Investing in our securities involves a high degree of risk.” Companies file a prospectus with the Securities and Exchange Commission when they register their securities. Brokerage firms that approved this investment for recommendation to their clients should have been aware of its risks.  

Investors who believe they suffered stock losses as a result of broker fraud or misconduct should contact Kurta Law for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com. 

About Opexa Therapeutics  

According to the prospectus, Opexa Therapeutics is a biopharmaceutical company developing personalized immunotherapy. Their products are purportedly meant to treat major illnesses such as multiple sclerosis. Information related to its product candidate, Tcelna, was “preliminary and investigative.”  

The Offering  

The offering dated August 7, 2013, announced that Opexa Therapeutics was offering 12,000,000 shares of common stock for $1.50 per share. It has since delisted from the stock exchange.  

Risk Factors Associated with Opexa Therapeutics  

The following risks are identified in the prospectus. Brokers who recommended this investment either knew or should have known about these risks.  

History of Operating Losses  

At the time of filing the prospectus, Opexa Therapeutics had yet to generate any profits and did not expect to be profitable in the foreseeable future.  

Substantial Douby Regarding the Company’s Ability to Continue  

The prospectus discloses that without significant additional funding, there was substantial doubt concerning Opexa Therapeutics’ ability to continue its operations.  

Need for Additional Capital  

Opexa Therapeutics stated the need for “substantial amounts of capital” in order to complete clinical trials for Tcelna. It also stated, “We can provide no assurance that we will be successful in any funding effort.”  

Delays in Clinical Trials 

Opexa Therapeutics stated that it may take longer than anticipated to enroll test subjects in clinical trials. This could result in delays that would mean increased costs.  

Convertible Securities Promissory Note Terms  

Opexa Therapeutics had issued convertible securities notes and warrants. Without sufficient cash flow, the company might not be able to comply with the terms of its convertible secured promissory notes, which are secured by a pledge of all of the company’s assets. Failure to pay the promissory notes could result in foreclosure.  

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  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.