STOCKS TELEGRAPH

Author: ST Staff

  • How Is The SPRO Stock Moving So Fast, Jumping 35% Premarket Session?

    As of the last check, Spero Therapeutics Inc. (SPRO) shares were trading at $18.88, up 35.24% in premarket trading. As of Wednesday’s close, Spero was trading at $13.96 after gaining 0.22%. The volume of SPRO stock was 92.85K shares, lower than its average daily volume of 1.4 million shares within 50 days.

    Over the last 12 months, SPRO shares have increased by 3.18%, and they have decreased by -3.39% in the past week. It has shed -31.79% over the past six months, while SPRO stock has lost -5.16% in the past three months. Further, SPRO’s stock market value currently stands at $417.54 million and it had 29.41 million outstanding shares.

    Since after close of the market yesterday, the SPRO stock has surged following an announcement of equity investment and a licensing agreement.

    Who invested in SPRO’s equity?

    Spero is a multi-asset, clinical-stage biopharmaceutical company specializing in the identification, development and commercialization of novel treatments for multi-drug-resistant (MDR) bacterial infections and rare diseases. Tebipenem HBr is SPRO’s lead product candidate aimed at treating complicated urinary tract infections (cUTIs) and acute pyelonephritis (AP).

    In related news, Spero today announced that Pfizer Inc. will contribute $40 million to the company through its Breakthrough Growth Initiative, a program focusing on advancing patient care.

    • SPRO’s next-generation polymyxin product candidate SPR206 will also be licensed by both parties for treating serious multi-drug resistant (MDR) Gram-negative infections in hospitals when administered intravenously (IV).
    • As well as preparing for a potential approval and launch of tebipenem HBr, SPRO intends to use the proceeds from this investment to continue the clinical development of both SPR720 and SPR206.
    • According to the securities purchase agreement between the parties, Pfizer acquired 2,362,348 shares of SPRO common stock for $16.93 per share.
    • SPRO has granted Pfizer the right to develop, manufacture and market SPR206 in ex-U.S. under the terms of a licensing agreement. and ex-Asia territories.
    • These rights entitle SPRO to up to $80 million in milestones and royalties on SPR206 net sales in these territories, ranging from high single digits to low double digits.

    Does SPRO stand to benefit from the current developments?

    Spero (SPRO) will benefit from this equity investment to advance its SPR206 and SPR720 clinical programs and work towards submitting a new drug application for tebipenem-HBr. Pfizer’s advanced position will help SPRO successfully commercialize SPR206 on its terms in the Pfizer territories, as it is uniquely positioned to profitably develop this asset. SPRO expects its cash runway to extend into the second half of 2022 with the net proceeds of its recently announced $40 million equity investment.

  • Property Solutions Acquisition Corp. (PSAC) Stock Undergoes Minor Volatility Despite Looming Merger with Faraday Future

    Property Solutions Acquisition Corp. (PSAC) stock prices were down by a marginal 1.83% as of the market closing on June 30th, 2021, bringing the price per share down to USD$15.58 at the end of the trading day. After hours trading saw the stock inch up by 2.70%, bringing it up to USD$16.00.

    Shareholder Meeting

    June 30th, 2021 saw PSAC and Faraday Future remind the former’s investors to cast their votes in favor of a proposed strategic collaboration that has been in the works since the start of the year. Following a successful vote, the combined entity will trade as a publicly listed company on the Nasdaq under the ticker symbol FFIE. The virtual meeting to approve the pending changes is scheduled for July 20th, 2021, with voting remaining open until 11:59 pm EDT, July 19th, 2021.

    Details of Acquisition

    The merger is set to generate roughly USD$1 billion in gross proceeds for Faraday Future, of which USD$230 million will be cash held by PSAC in trust, assuming no redemptions. The gross proceeds will also consist of USD$775 million of fully committed common stock PIPE at a price per share of USD$10.00. Accordingly, the transaction is forecasted to fully fund the production of the ultimate-performance luxury electric FF 91, which is set to define its class, within a year of the closing of the transaction. Funds from the transaction will also facilitate the future development of the company’s unique I.A.I system.

    About Faraday

    Faraday Futures has implemented a worldwide hybrid manufacturing strategy, combining its manufacturing facility in California with a contract manufacturing partner in South Korea. As per the strategy, FF91 is set to revolutionize its driving class among electric vehicles, with nearly 900 filed or issued global patents supporting its proliferation, from Variable Platform Architecture to its Propulsion system, and Advanced Internet, Autonomous Driving and Intelligence technology.

    After the Merger

    The transaction is expected to close in the second quarter of 2021, after which the combined company will be named Faraday Future Inc. and will trade on Nasdaq with the new ticker symbol FFIE. Estimated post-transaction equity value of the company is expected to be around USD$3.4 billion. PIPE anchor investors include some of the biggest institutional shareholder from the U.S and Europe, a Tier-1 city in China, and a Top 3 Chinese OEM.

    Future Outlook for PSAC

    Armed with the highly likely upcoming acquisition, PSAC is poised to capitalize on the plethora of opportunities afforded to it from the strategic collaboration. With a world that is hurtling towards cleaner transportation, electric vehicles are a burgeoning market that the company is now well situated to take advantage of.

  • What Is Leading The XELA Stock To Decline Premarket Session?

    Exela Technologies Inc. (XELA) is in the red today in the premarket session, falling -1.26% to $2.36 at the last check. XELA stock rose 2.14% to $2.39 on Wednesday but was down -7.95% to trade at $2.20 in afterhour trades. XELA stock volume on the day was 436.52 million, up from 8.81 million on average in the last 3 months.

    For XELA stock, the 50-day moving average is $1.65, and the 200-day moving average is $1.76. Additionally, the XELA stock is currently trading at 76.06 on the Relative Strength Index. Investors appeared to be taking profits after the XELA stock surged last session.

    Why did XELA surge in regular session?

    Exela Technologies is a business process automation (BPA) leader. XELA’s proprietary technology enables it to provide digital transformation solutions that are designed to increase quality, productivity, and end-user satisfaction. In addition to serving more than 4,000 customers throughout 50 countries, XELA has more than 60% of Fortune 100 companies as clients.

    In a statement yesterday, Exela Technologies announced that it has completed its $100 million at-the-market equity plan, which was announced on May 27, 2021.

    Additionally, XELA has established an equity investment program worth $150 million. XELA intends to use the net proceeds from the offering to repay debt, acquire or license additional product candidates, businesses, as well as raising working capital.

    Exela, in a separate statement yesterday announced that the Digital Mailroom (DMR) platform is now available for small and midsize businesses (SMBs) in the UK to sign up online.

    • More employees are choosing to work from home as the remote working trend gains wider acceptance in the operations of small businesses.
    • XELA DMR will serve this rapidly growing customer base across Europe, beginning with the UK.
    • Enterprise customers from across Europe have already access to the DMR platform through XELA.
    • A virtual office address helps small and medium businesses and startups, as well as individuals in the UK get their mail as digitized documents accessible through the DMR portal, and businesses and professionals can now register for the XELA DMR.
    • Users can choose from a variety of pricing plans and signup easily for XELA, which is a multi-industry solution.
    • The DMR service offers add-on services like parcel delivery as well as several inbuilt features such as eSignatures, data redactions and storage in addition to digitized delivery of documents.

    XELA’s disruptive approach to remote working:

    Exela (XELA)’s DMR offers an essential and valuable service for seamless business processes that goes hand-in-hand with the work from home trend. XELA’s goal with DMR is to enable businesses of any size to easily sign up and begin using its solutions since the way people and businesses work has drastically changed.

  • Here is why Birks Group Inc. (BGI) stock rallied on Wednesday?

    Here is why Birks Group Inc. (BGI) stock rallied on Wednesday?

    Birks Group Inc. (BGI) shares surged 70.21% in after-hours on Wednesday, June 30, 2021, and closed the day at $4.00 per share. Earlier, BGI’s stock remained unchanged in the morning session at $2.35. BGI shares have risen 201.36% over the last 12 months, and they have moved down by 9.62% in the past week. Over the past three months, the stock has lost 29.64%, while over the past six months, it has declined 161.11%.

    Recent business update

    On June 30, 2021, Birks Group Inc announced that its all stores across Canada are now open for in-person shopping and serving clients per the directives of local government and public health officials.

    Recent financial results announcement

    On June 17, 2021, Birks Group Inc released its financial results for the fiscal year ended March 27, 2021.

    FY-2021 financial highlights

    • For FY 2021, Birks Group Inc net sales were $143.1 million compared to $169.4 million for FY 2020.
      The gross profit was $ 56.4 million in FY 2021 compared to $64.5 million in FY 2020.
    • Total operating expenses were $59.2 million in the fiscal year ended March 27, 2021, compared to $71.02 million for FY 2020.
    • The company suffered a net loss of 8 million, or $0.32per share in FY 2021 compared to a net loss of $12.8 million, or $0.71 per share for fiscal 2020.
    • EBITDA was $2.6 million in FY 2021 compared to EBITDA of negative $1.7 million for fiscal 2020.
    • Adjusted EBITDA was $2.6 million for FY 2021 compared to a negative $1.4 million for FY 2020.

    FY2021 Holiday Period Sales Results

    On January 15, 2021, Birks Group Inc reported its sales results for the interim holiday sales period from November 1, 2020, through December 26, 2021.

    • Due to the current pandemic, net sales were 0.2% lower than last year in FY 2021 holiday period.
    • People did more online shopping which resulted in a 176% increase in e-commerce sales for the company during the holiday season.

    New Term Loan with Investissement Québec

    On July 9, 2021, Birks Group Inc closed a CAD$10 million subordinated secured term loan with Investissement Québec (“IQ”) on July 8, 2020. This new term loan was used to support the working capital needs of the Company following the impacts of COVID-19 and increases the Company’s borrowing capacity.

    Conclusion

    Well, the news of opening all of BGI stores across Canada took the BGI stock to new heights and it can resume its surge when the market will open on Thursday.

  • Check-Cap Ltd. (CHEK) Stock Plummets Following News of Registered Direct Offering

    Check-Cap Ltd. (CHEK) Stock Plummets Following News of Registered Direct Offering

    Check-Cap Ltd. (CHEK) stock prices were down by 19.5364% some time after market trading commenced on June 30th, 2021, bringing the price per share down to USD$1.2150 early on in the trading day.

    Registered Direct Offering

    The company announced on June 30th, 2021 that it had entered into various definitive agreements with institutional and accredited investors. As per the agreement, the company would put up 25,925,926 ordinary shares of the company for sale, along with warrants to purchase up to the same number of ordinary shares. The registered direct offering is seeing each ordinary share being sold in conjunction with one short-term warrant to purchase one ordinary share at a combined offering price price of USD$1.35 per ordinary share and accompanying warrant.

    Share Warrants

    The short-term warrants will have an expiry date of two and a half years following the date of issuance and will be exercisable immediately with an exercise price of USD$1.50 per ordinary share. The closing of the registered direct offering is expected to close on July 2nd, 2021, pending the satisfaction of customary closing conditions.

    Capital Generation

    CHEK forecasts generating roughly USD$35 million in gross proceeds from the offering, before the deduction of expenses related to the offering. This number does not include proceeds received from the exercising of warrants, the full exercising of which will generate additional gross proceeds of roughly USD$38.9 million before the deduction of offering-related expenses. The capital generated from the offering is planned on being allocated towards advancing the ongoing clinical development of C-Scan, including the company’s upcoming U.S pivotal study.

    Manufacturing Hickups

    Technical issues with a single source supplier resulted in delays in manufacturing, but the company continues to develop and expand its entire production process in order to meet its target manufacturing capacity. Consequently, the company forecasts delays in its clinical trials, at the forefront of which is the U.S. pivotal trial which has an updated commencement date in the first quarter of 2022. The company is continuing to scale its manufacturing up to support the upcoming clinical trials once production returns to normal.

    Future Outlook for CHEK

    Armed with an influx of capital generated from its registered direct offering, CHEK is poised to initiate clinical trials that the company hopes to see through to commercialization. Investors are keen for the company to resume normal manufacturing and allocate resources efficiently, so as to ensure maximum possible growth and increases in shareholder value.

  • Streamline Health Solutions, Inc. (STRM) Stock on the Rise Following Acquisition of New Contract

    Streamline Health Solutions, Inc. (STRM) Stock on the Rise Following Acquisition of New Contract

    Streamline Health Solutions, Inc. (STRM) stock prices were up by 7.02% shortly after market trading commenced on June 30th, 2021, bringing the price per share up to USD$1.84 early on in the trading day.

    New Contract

    June 30th, 2021 saw the company announce the signing of a contract with a 2,367-bed, Epic EMR-based health system serving the Midwest U.S. STRM’s eValuator cloud-based automated pre- and post-bill coding analysis technology will be used by the health system to improve revenue integrity, as well as a financial performance from both inpatient and outpatient services.

    Scope of eValuator

    The company is revolutionizing the industry with a movement to facilitate financial improvement with the use of pre-bill technology. eValuator offers providers the chance to address coding issues before they contribute to lower revenues, denied claims, and non-compliance exposure. STRM combines this innovative technology with expert auditing services in order to provide its clients with a comprehensive Revenue Integrity Program. The eValuator program substantially improves current financial performance by helping users optimize coding and documentation accuracy for pre-billing patient encounters. The program also serves to assist providers in making the transition to new payment models.

    PPP Forgiveness

    STRM announced on June 16th, 2021 that it had received a notice from Western Alliance Bank, the lender of the company’s Paycheck Protection Program loan which approved the forgiveness of the PPP loan. A total of USD$2,300,600 had been approved to be written off by the U.S. Small Business Administration. The financial support stemming from the implementation of the CARES Act has helped U.S businesses stay afloat over the course of the devastating coronavirus pandemic. The loan-turned-grant allowed the company to maintain its workforce despite the effects of the Covid-19 situation.

    Revenue Reports

    Revenues for the first quarter of the fiscal year 2021 were reported at USD$3 million, up from the USD$2.9 million reported in the prior-year quarter. SaaS revenue was up a very healthy 32% as compared to reports from the first quarter of the fiscal year 2020, largely contributing to the growth in total revenues for the quarter. The increase was partially offset by lower revenue from professional services, audit services, and maintenance and support.

  • Diffusion Pharmaceuticals, Inc. (DFFN) Stock Undergoes Minor Volatility Ahead of TCOM Trial Findings

    Diffusion Pharmaceuticals, Inc. (DFFN) Stock Undergoes Minor Volatility Ahead of TCOM Trial Findings

    Diffusion Pharmaceuticals, Inc. (DFFN) stock prices were down by 3.33% as of the market closing on June 29th, 2021, bringing the price per share down to USD$0.7557 at the end of the trading day. Subsequent pre-market fluctuations saw the stock surge by 5.99%%, bringing it up to USD$0.801.

    Phase 1 Trial

    The company announced topline results from its Phase 1 trial of trans sodium crocetinate (TSC), its lead product candidate, on June 30th, 2021. Transcutaneous oxygen monitoring (TCOM) was used to measure the direct pharmacodynamic effects of TSC on peripheral tissue oxygenation in healthy normal volunteers enrolled for the trial. Topline results were founded on analyses of the primary endpoint data, indicating a positive dose-response trend in TCOM readings after TSC administration during the measurement period, as compared to a placebo.

    Trial Results

    Statistical significance was not reached in the magnitude of the treatment’s effect, largely because of the small number of healthy subjects in each cohort, as well as the inherent variability of tcp02 measurement. Despite this, primary endpoint data trends indicated improved peripheral oxygenation as compared to the placebo, with no evidence of hyperoxygenation. TSC was found to be safe and well-tolerated at all doses tested in the trial, with no major adverse events or dose-limiting toxicities.

    Scope of TSC Data

    The data collected served to further elucidate TSC’s exposure-response relationship, which the company will use to build on their clinical development strategy. Upcoming study designs for future trials will be informed by the collected data, as will the ongoing investigation of the timing of administration to maximize clinical efficacy. DFFN believes the data will complement findings from the company’s Covid-19 trial, as well as supporting the ongoing execution of its three well-controlled Oxygenation Trials.

    Supporting TSC Trials

    Each trial is uniquely designed to differentially explore TSC’s unique mechanism of action, with the individual and collective data from these studies forecasted to inform the company’s late phase programs and clinical indications in the push for the commercialization of TSC. The first of the trials was the TCOM Trial, with the primary endpoint evaluating the relative change in TCOM readings from baseline after TSC administration as compared to the placebo.

    Future Outlook for DFFN

    Armed with the recent results of their most recent clinical trial, DFFN is poised to capitalize on the opportunities afforded to it by the expanded scope of options made available to it. Investors are confident that the company will continue to ensure a continued trajectory of success by making use of the resources at their disposal and trial findings as they arise.

  • Why Is Ocuphire (OCUP) Stock So Hot In Premarket?

    Why Is Ocuphire (OCUP) Stock So Hot In Premarket?

    At last check, shares of Ocuphire Pharma Inc. (OCUP) were up 32.84% to trade at $6.31 in pre-market trading. On Wednesday, Ocuphire stock fell -2.06% to close at $4.75. Volume for OCUP stock stayed at 0.39 million shares, meaning it was a lower daily volume than its average of 0.42 million shares in the past 50 days. OCUP’s market capitalization stands at 57.67 million dollars and it have 10.92 million shares outstanding. OCUP stock is gaining traction after encouraging results of a clinical trial.

    Why did that trial take place?

    Ocuphire develops and commercializes therapies for the treatment of several eye conditions through its clinical-stage ophthalmic biopharmaceutical platform. In the course of pursuing its strategy, OCUP will continue to explore opportunities to acquire additional ophthalmic assets and to search for strategic partners to assist with drug development, regulatory preparation, and commercialization efforts in key global markets.

    In its VEGA-1 Phase 2 clinical trial, Ocuphire announced today that the primary and many secondary endpoints for its clinical study of Nyxol combined with low dose pilocarpine (LDP) in presbyopic subjects have been met.

    Key highlights:

    • In photopic binocular near vision, 61% of Nyxol + LDP subjects improved by 15 letters or more at 1 hour compared with 28% of placebo subjects.
    • Phase 3 co-primary endpoint of OCUP demonstrated 15 letters (3 lines) of improvement in near vision while only losing less than 5 letters in distance vision.
    • A rapid onset of efficacy was noted by the OCUP within 30 minutes.
    • Through at least 6 hours, OCUP observed a sustained improvement in near vision.
    • OCUP reported near vision efficacy in both monocular and binocular view.
    • By observing both its efficacy in light as well as dark iris colors, OCUP has identified that it is effective.
    • OCUP trial unveiled that Nyxol + LDP was generally well tolerated.
    • According to OCUP, there were no serious adverse events (AE) while most of AEs were mild in nature.
    • The OCUP trial did not send serious adverse events, nor did there appear to be any headaches or brow aches.

    Ocuphire (OCUP) plans to move on to Phase 3 as a result of these results. Nyxol + LDP has the potential for differentiation and to be a best-in-class product for treating presbyopia, OCUP believes, given its rapid onset and sustained duration of efficacy, favorable safety profile, and potential tunability of treatment.

    Trial summary:

    The Based on these results, Nyxol works by contracting the iris dilator muscle, which results in a smaller pupil size and beneficial effects on presbyopia. In the recent clinical studies by Ocuphire (OCUP), Nyxol plus LDP combination is demonstrated to have a rapid onset of action and long-lasting effect while maintaining good distance vision at night and day. The OCUP found all treatments to be well tolerated and safe. OCUP views Nyxol + LDP as one of the most promising treatment options for presbyopia.

  • Do You Know Why NaturalShrimp (SHMP) Stock Dropped 6%?

    Do You Know Why NaturalShrimp (SHMP) Stock Dropped 6%?

    Last session, NaturalShrimp Inc (OTCQB: SHMP) saw its share price drop -6.59% to $0.4252, bringing its market cap to $256.40M. NaturalShrimp stock traded 4.02M shares recently, exceeding its average daily volume of 3.78M shares. Further, the SHMP stock has traded between $0.4236 and $0.4650. In the pink sheets SHMP, there are 603.02M shares outstanding vs 451.47M float. SHMP stock fell following the closing of a share offering.

    The SHMP offering was what?

    With facilities located near San Antonio, Texas and Webster City, Iowa, NaturalShrimp is a publicly traded aquaculture company based in Dallas. In addition to providing fresh, never frozen shrimp, SHMP develops patented technology to produce safe, nontoxic shrimp in enclosed saltwater systems without using antibiotics or toxic chemicals. Gourmet-grade Pacific white shrimp can be produced anywhere in the world by SHMP systems.

    NaturalShrimp yesterday announced closure of a transaction to make available 7,500,000 shares of the Company’s common stock for proceeds of $3,000,000 through a registered direct offering.

    • The offering of SHMP was pursuant to a shelf registration statement on Form S-3.
    • In this transaction, SHMP sold its shares at a price of $0.40 per share.
    • SHMP has now raised $18M with an average price of $0.525 per share under the S-3.
    • SHMP intends to use the proceeds in connection with previously announced letter of intents and to expand its NaturalShrimp Iowa business.
    • Among the offered securities were warrants for the purchase of 1,100,000 shares of common stock for a price of $0.05.
    • SHMP’s securities are being offered pursuant to an effective shelf registration statement it filed with the Securities and Exchange Commission (“SEC”) on March 22, 2021.
    • SEC will soon issue the final prospectus supplements describing and relating to the SHMP’s registered direct offering and they will be available online.

    This week, NaturalShrimp (SHMP) also announced its attendance at TRA Marketplace, a trade show held by the Texas Restaurant Association each year.

    TRA’s show will take place in San Antonio, TX, July 10-12, 2021. A NaturalShrimp Chef’s Table will be held at the conference on Sunday, July 11, and Monday, July 12, 2021, where management of SHMP will also be on hand to answer any questions.

    SHMP eyeing NASDAQ listing:

    NaturalShrimp (SHMP) has recently appointed Lake Street Capital Markets, LLC as its Capital Markets advisor, which will provide assistance to NaturalShrimp (SHMP) with capital markets, mergers and acquisitions, licensing, and strategic investment advice. As part of its engagement with this opportunity, SHMP anticipates completing its uplisting to the Nasdaq Stock Market early in the third quarter of 2021.

  • Sonim Technologies, Inc. (SONM) Stock Continues Trending Down Despite Securing Design Win Awards

    Sonim Technologies, Inc. (SONM) Stock Continues Trending Down Despite Securing Design Win Awards

    Sonim Technologies, Inc. (SONM) stock prices were down by 3.07% as of the market closing on June 29th, 2021, bringing the price per share down to USD$0.6091 at the end of the trading day. Subsequent pre-market fluctuations saw the stock dip by another 0.34%, bringing it up to USD$0.61.

    Design Win Awards

    June 29th 2021 saw the company announce the securing of design win awards with a leading U.S cellular carrier for two of the company’s innovative ultra-rugged phones that are expected to be launched in 2022. The award is for an upgraded feature phone with enhanced PTT capabilities, as well as a smartphone with 5G capabilities. An RFP process used design specifications, feature set, and cost as parameters on which to base the carrier design win awards.

    Existing Awards

    With the addition of the designs into the U.S carrier’s portfolio for 2022, SONM now has design win awards from three of the US’s largest carriers. These awards are for upcoming products that are expected to be launched from the second half of 2021 through to the third quarter of 2022. These launches and the recent commencement of the shipment of SmartScanners signals the company’s commitment to expand its product portfolio and addressable market opportunity.

    Ahead of the Competition

    The company has proven itself to be a leader in the provision of rugged and durable mobile phones for task workers in hazardous industries such as public safety, construction, manufacturing, field service, transportation, hospitality, and more. With exact specifications pending, the upcoming products are rife with a plethora of key features. One such feature is OneTouch PTT, which is adedicated PTT button that facilitates instant communication without the need to open the device or launch an app.

    Key Features

    A Red (Emergency) Button instantly alerts dispatch and/or emergency services should the need arise, while ultra-loud speakers and noise suppression ensure communicability in the most adverse of conditions. The ruggedness of the devices is matched by that of a broad range of industrial accessories to address the common needs of first responders, including remote speaker microphones, wireless mics, in-vehicle mounts. The mobile phones will also come equipped to support 5G networks, FirstNet public safety broadband network, and CBRS-based private networks.

    Future Outlook for SONM

    Armed with the tenured security of its upcoming product launches, SONM is poised to push for the successful commercialization and proliferation of its product portfolio additions. Shareholder are keen to see the company leverage the resources at its disposal to ensure the company continues its trajectory of success.