A recommendation by an investment newsletter, Small Stock Specialist, published by Stansberry & Associates, appears to be responsible for a surge in the stock price of Heat Biologics, a company that develops treatments for bladder and lung cancer.

In mid-August it was announced that Heat Biologics, a Durham, South Carolina-based company, had received $7.5 million in debt financing, enough capital to pursue the development of cancer-fighting drugs through the first quarter of 2016, and perhaps beyond.

That announcement, which was made on a Monday, came immediately after Heat Biologics’ share price soared by 61 percent during the previous Thursday and Friday. That incredible increase in stock price came right after Stansberry & Associates’ investor’s newsletter, Small Stock Specialist, recommended investors purchase the stock.

“Considering Heat Biologics’ revolutionary cancer approach,” the Stansberry newsletter stated, “the stock is a downright steal at current levels.”

Heat Biologics received their financing from Square 1 Bank, a fellow Durham-based company. The bank has a track record of working with small companies in the Durham area.

When Stansberry made its assessment, it was not so concerned that currently Heat has no products on the market. They focused instead on the fact that Heat is deep within the development of drugs for bladder and lung cancer. They are already conducting Phase 2 trials of the bladder cancer treatment, with initial results expected during the third quarter of 2016. Phase 2 trial of the lung cancer drug has already commenced. Jeff Wolf, CEO of Heat reacted to the announcement of the new financing:

“The strategy is to continue doing what we are doing and progress our clinical trials,” said Wolf.