STOCKS TELEGRAPH

Author: ST Staff

  • Luokung Technology Corp. (LKCO) Stock Newest Target of Meme Stock Phenomenon Amid CCMC Legal Dispute

    Luokung Technology Corp. (LKCO) Stock Newest Target of Meme Stock Phenomenon Amid CCMC Legal Dispute

    Luokung Technology Corp. (LKCO) stock prices stayed stable over the course of June 11th, 2021, with no change in the opening and closing price. Pre-market fluctuations, however, saw the stock skyrocket by 17.51%, bringing it up to USD$2.08.

    Meme Stocks on the Rise

    The meme stock phenomenon continues to dominate the stock exchange, with a slew of stocks being targeted for a coordinated pump by the Reddit-driven retail investors. Underdogs with a high short interests find themselves fortuitously bolstered as the community of investors continues to target companies without a logical basis for their support. In the absence of recent news or any fundamental developments, companies sometimes on the brisk of collapse find themselves renewed by the sweeping meme stock craze.

    CCMC Designation

    LKCO’s recent skyrocketing of equity value comes after turbulent several weeks, following the company’s announcement of the halting of the trading of its common shares on stock exchanges. This restriction was imposed on the company after it had been given a Communist Chinese Military Company (CCMC) designation. Because of this designation, LKCO finds itself at the mercy of Executive Order 13959.

    Resisting CCMC Designation

    A joint complaint was filed by LKCO and two U.S. shareholders with the United States District Court for the District of Columbia, who are seeking to reverse this designation. As per the complaint, the U.S. DoD’s designation of LKCO as a CCMC and the resulting restrictions authorized by Executive Order 13959 by former President Trump are both in violation of the law.

    Request for Preliminary Injunction

    Because of the resolution of the lawsuit being too far in the future, LKCO has filed a motion for a preliminary injunction that will defer the CCMC designation and associated trading restrictions until the case has been settled. While the company is confident of an outcome in their favor, they argue that the failure to issue an injunction could end up having unmerited and disastrous effects on the company’s balance of equities, as well as their public interests.

    Preliminary Injunction Granted

    May 6th, 2021 saw the company announce that their previously announced motion for a preliminary injunction was granted. Following the ruling, the Department of Defense and other government defendants are prohibited from implementing or enforcing the designation of LKCO as a CCMC, or any consequential restrictions pursuant to Executive Order 13959.

    Future Outlook for LKCO

    Armed with the fortuitous surge in the value of their equity, LKCO is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher in more organic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Progenity Inc. (PROG) Stock Skyrockets as Next Target of Reddit-Driven Meme Stock Phenomenon

    Progenity Inc. (PROG) Stock Skyrockets as Next Target of Reddit-Driven Meme Stock Phenomenon

    Progenity Inc. (PROG) stock prices soared by a massive 28.92% as of the market closing on June 11th, 2021, bringing the price per share up to USD$3.21 at the end of the trading day. Pre-market fluctuations saw the stock surge by another 12.77%, bringing it up to USD$3.62.

    Meme Stock Phenomenon

    The past several trading days have seen the stock market being dominated by the meme stock phenomenon that spurred the GME and AMC developments earlier in the year. In the absence of any significant news or developments, the recent surge in PROG stock prices is likely to be attributable to the coordinated pump by investors who are users of the popular social media platform, Reddit. With a relatively high percentage of shorted shares, at 6.7%, the company is a prime target for Reddit-driven retail investors.

    Private Placement

    Concurrent with the surge in stock price, PROG announced on June 10th, 2021 that it had entered into a definitive securities purchase agreement with two leading healthcare-focused investment funds. The agreement will see the sale of units comprised of shares of common stock and warrants. The stocks are interchangeable with pre-funded warrants to purchase common stock and the warrants are for the purchase of common stock.

    Details of the Placement

    The private placement is expected to result in the generation of gross proceeds amounting to USD$40 million before the deduction of expenses related to the offering. As per the agreement, the closing of the placement will be followed by the issuance of units representing 16,194,332 shares of common stock (or pre-funded warrants. Warrants will also be issues concurrently, which will allow for the purchase of an aggregate of another 16,194,332 shares of common stock.

    Pricing of Placement

    Each unit issues by PROG will consist of one share of common stock, as well as one warrant to purchase one share of common stock. The price of each combined unit has been set at USD$2.47. Each warrant will have an exercise price of USD$2.84 per share with the option to be exercised at any time within 5 years of the issuance.

    Closing of the Placement

    The price per unit was partially determined by the average of the last five closing price of PROG’s common stock on the Nasdaq Global Market. Should the warrants be exercise for cash, the company will see the generation of additional gross proceeds of almost USD$46 million. The closing date of the placement is expected for June 14th, 2021, pending the satisfaction of customary closing conditions.

    Future Outlook for PROG

    Armed with a solid liquidity position from their private placement, as well as the fortuitous surge in value of their equity, PROG is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher in more organic growth over the long-term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Senseonics Holdings Inc (SENS) Stock Continue Upward Trend Following Results of PROMISE Study and Continued Meme Stock Craze

    Senseonics Holdings Inc (SENS) Stock Continue Upward Trend Following Results of PROMISE Study and Continued Meme Stock Craze

    Senseonics Holdings Inc (SENS) stock prices were up by a significant 10.77% as of the market closing on June 11th, 2021, bringing the price per share up to USD$4.01 at the end of the trading day. After-hours trading saw the stock continue to climb by 5.24%, bringing it up to USD$4.22.

    SENS Gains Traction on Reddit

    The recent wave of the meme stock crazy running rampant through the stock market worked in SENS’s favor. With the surge in activity regarding the stock on Reddit, the combination of high short interest and positive fundamental developments made SENS a prime target for the consort of retail investors. SENS consolidated the confidence of both existing and prospective investors with Q1 2021 reports jumping to USD$2.85 million, up from the USD$36,000 reported in the prior-year quarter.

    PROMISE Study

    The company’s stock price saw a surge that it has since maintained following the announcement on June 4th, 2021 by SENS of the results of their PROMISE study. The study was designed to evaluate the safety and accuracy of the next-gen Eversense CGM System for up to 180 days with reduced calibrations.

    Presenting Results

    The findings were presented at the University of Colorado, Denver as an oral presentation at the 14th Annual ATTD Meeting, The presentation showcased results from both the primary sensor and a secondary sensor with modified chemistry in a subset of study participants. The secondary sensor is referred to as the SBA sensor.

    Scope of CGM

    With the essential value of CGM for patients with diabetes, especially the demographic requiring insulin, SENS posits that it is imperative that more patients be enabled to utilize CGM. To this end, there needs to be a greater variety of choice in product features that leads to increases accessibility. With the accuracy profile demonstrated by Eversense in the PROMISE study, the role of long-term implantable CGM system is validated in its capacity to help people manage their glucose levels.

    Key Results of PROMISE Study

    The results reported an overall mean absolute relative difference (MARD) against reference value of 9.1% for the primary sensor, spanning 49,000 paired points. The secondary SBA sensor reported a MARD of 8.5%, spanning 12,000 paired points. The confirmed hypoglycemic alert detection rate was 93% for the primary sensor and 94% for the SBA sensor.

    Future Outlook for SENS

    Armed with both the promising results of the PROMISE study and the surge in value of its equity from Reddit-driven retail investors, SENS is poised to capitalize on the opportunities presented to it. The company is keen to use this momentum to establish a continued trajectory of success. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Aptinyx Inc. (APTX) Stock Surges Inexplicably Amid Continuing Meme Stock Phenomenon Throughout Stock Market

    Aptinyx Inc. (APTX) Stock Surges Inexplicably Amid Continuing Meme Stock Phenomenon Throughout Stock Market

    Aptinyx Inc. (APTX) stock prices were up by a massive 28.7134% shortly after market trading commenced on June 11th, 2021, bringing the price per share up to USD$4.1317 early on in the trading day.

    Fortuitous Gains

    This surge in the value of the company’s equity comes despite a lack of significant news or recent developments that would help explain the overnight skyrocketing of the stock. With the meme stock phenomenon that rule the stock market this past week, it is possible the movement stems from a coordinated effort by retail investors to execute a short squeeze.

    Solid Liquidity Position

    In their financial reports for the first quarter of the fiscal year 2021, APTX reported a comfortable liquidity position with USD$146.8 million in cash and cash equivalents as of March 31st, 2021. This is an increase from the USD$141 million reported as of December 31st, 2020. With its current liquidity position, APTX anticipates its operations being funded through to 2023.

    Collaboration Revenue

    Revenue for the first quarter of the fiscal year 2021 came in at USD1 million, an improvement on the USD$0.8 million reported for the same time period of the prior fiscal year. The company’s revenue was generated from its research collaboration agreement with Allergan, a subsidiary of AbbVie. The funding of the company’s operations does not rely on the generation of these revenues.

    R&D Expenses

    Research and development costs were reported at USD$10.3 million for the first quarter of the fiscal year 2021, down from the USD$11.1 million reported for the same time period of the prior fiscal year. The year-over-year decrease is largely attributable to the completion of the exploratory Phase 2 study of NYX-783 in PTSD, having occurred in October 2020. Also contributing to the difference was the temporary suspension of enrollment in the exploratory Phase 2 study of NYX-458 in cognitive impairment, which went on to recommence in March 2021. The decrease was partially offset by the increasing of costs associated with the recommencement of the company’s two Phase 2b studies of NYX-2925 in chronic pain.

    Future Outlook for APTX

    Armed with a solid liquidity position that will see the company through the next several quarters, APTX is poised to push for the commercialization of its pipeline candidates. The company is keen to continue its trajectory of success and capitalize on the recent gains in equity value to ensure further organic growth. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Iconix Brand Group, Inc. (ICON) Stock Surges Following News of Acquisition in “Go Private” Transaction

    Iconix Brand Group, Inc. (ICON) stock prices surged by 27.3469% shortly after the trading day commenced, bringing the price per share up to USD$3.12 early on in the trading day.

    Acquisition of ICON

    The company announced on June 11th, 2021 that it had entered into a definitive agreement and plan of merger that would oversee ICON being acquired by Iconix Acquisition Corp, an affiliate of Lancer Capital. The agreement will result in an all-cash transaction that will set the value of ICON at roughly USD$585 million, which will include existing net debt.

    Background of Decision

    This news comes after the company spent a year examining potential strategic alternatives for the company before deciding to authorize the merger. ICON is expected to continue developing its brand and supporting its partners after its transition into a private company, with its Board of Directors deeming this to be the best choice in the interests of their shareholders.

    Pricing of Transaction

    As per the agreement, the Purchaser will initiate a tender offer that will see the acquisition of all of the company’s outstanding shares of its common stock. The pricing has been set at USD$3.15 per share of common stock, in cash.  The offer price per share includes a 28.6% premium over the stock’s closing price on June 10th, 2021, the last trading day prior to the announcement. The agreed-upon price represented a 46.5% premium over the 30-day average volume-weighted share price for the period ended June 10th, 2021.

    Details about the Deal

    Shares that are not tendered as a part of the offer will be acquired in a second-step merger, with the pricing being the same as the cash price paid in the initial offer. The closing of the transaction is contingent on the satisfaction of a minimum tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other typical closing conditions. Following the completion of the transaction, which is expected for the third quarter of fiscal 2021, ICON will be a private company.

    Future Outlook for ICON

    Armed with the additional resources that stem from its acquisition, ICON is poised to capitalize on its expanded opportunities. The company is keen to continue its trajectory of success in its push for further growth. Current and potential investors are hopeful that management will leverage the resources are their disposal to facilitate significant and sustained increases in shareholder value.

  • TRxADE (MEDS) Stock Is Down During Pre Market Trading, Can You Explain Why?

    TRxADE (MEDS) Stock Is Down During Pre Market Trading, Can You Explain Why?

    Today’s premarket session saw TRxADE Group Inc. (MEDS) shares decline -9.30% at $6.05. In the last trading session, TRxADE stock rose 63.48% to $6.67. MEDS stock appears to be heading for a retracement after yesterday’s gain.

    What led to a rise in the MEDS stock price?

    Health services IT company TRxADE optimizes drug procurement, prescription journeys, and patient engagement in the US by digitalizing the retail pharmacy experience. The Bonum Health brand offers telehealth services under the TRxADE brand, which is a drug procurement marketplace bringing price transparency to 12,100+ members across the country.

    The TRxADE subsidiary MedCheks has launched a mobile app, HealthPassport, that can be downloaded from the Apple App Store, announced MEDS yesterday.

    • The MedCheks app offers a QR code that can be used to show proof of health records securely once it is installed on an iOS device.
    • MEDS’ app will store health records, including vaccinations or test results, that will be needed to gain entry into a country, establishment, event or mode of transportation that requires verification protocols.
    • By providing advanced, cost-effective digital healthcare applications, TRxADE HEALTH is meeting the need to ease the reopening of the economy as COVID-19 subsides in some markets.

     How is MEDS planning to move forward?

    TRxADE (MEDS) app is a trusted platform that reestablishes daily operations in a secure manner so that organizations across all verticals can take advantage of the security, ease, and cost-effective measures that it provides. With its initial partners in the months ahead, MEDS is on track to launch successfully.

  • CannaPharmaRx (CPMD) Stock Fell 5%. How Did That Happen?

    In recent trading, future leader in ultramodern, highly efficient cannabis production facilities in Canada, CannaPharmaRx Inc. (OTCPink: CPMD) stock fell to $0.0755, recording a loss of -5.03% in value. CannaPharmaRx stock experienced a -24.50% decline in the last week versus a -54.49% decline in the previous month. Since selling a facility, CPMD stock has been hurting.

    What was the price CPMD received for the facility?

    CannapharmaRx specializes in the acquisition and development of modern CBD production facilities in Canada. CPMD is developing a 48,500 square foot cannabis grow facility and is exploring potential acquisitions. In its strategic vision, CPMD strives to become a leader in low-cost, high-quality cannabis production around the world by developing, purchasing, and enhancing existing facilities.

    In a press release issued on Tuesday, CannapharmaRx announced it is selling its facility in Hanover, Ontario for $2,000,000 CAD.

    • CPMD’s Hanover plant is housed on ten acres of land and includes 48,800 square feet of greenhouse.
    • CPMD would not be able to fully utilize the Hanover facility since the Cremona facility is more technically advanced.
    • The company’s senior management willed unanimously that CPMD should sell that asset for the most profit.
    • The deal is scheduled to close on June 30, 2021.

    What plans does CPMD have for the sale proceeds?

    CannapharmaRx (CPMD) will significantly improve its balance sheet after closing this sale, as debt and certain liabilities will be eliminated. As a result of these transactions, CPMD can now focus on purchasing the larger facility in Cremona, Alberta, which is a pivotal asset. The sale proceeds will allow that facility to demonstrate production readiness within a short period of time as a result of working capital.

  • Premarket Activity For The ChemoCentryx (CCXI) Stock Today: What Is Raising It?

    In premarket hours on the last check Friday, ChemoCentryx Inc. (CCXI) was up 13.52% at $13.1. In the last trading session, ChemoCentryx stock finished the session up 3.2% at $11.54. A range of $11.1208 to $11.74 was seen in CCXI stock price on the day.

    ChemoCentryx stock traded 3.61 million shares on the day, a volume higher than its daily average of 1.9 million shares over 100 days. The CCXI stock has gained traction following the selection of an abstract from ChemoCentryx by a European body.

    Which abstract from CCXI was selected?

    The biopharmaceutical company ChemoCentryx is developing new medicines for cancer and inflammatory diseases. By using chemokines and chemoattractants, CCXI targets the discovery, development, and commercialization of oral therapies. Avacopan (CCX168) is the lead drug candidate of CCXI. ChemoCentryx completed a pivotal Phase III trial in ANCA-associated vasculitis and a New Drug Application is under review by the US Food and Drug Administration (FDA).

    ChemoCentryx this week has released presentations highlighting findings from its Phase III ADVOCATE and Phase II ACCOLADE and LUMINA-1 trials.

    • CCXI’s presentations were a part of the ERA-EDTA (European Renal Association – European Dialysis and Transplant Association) annual meeting, which was held virtually from June 5 to 8, 2021, in Berlin, Germany.
    • CCXI is also working on avacopan as a treatment for C3 glomerulopathy (C3G) and hidradenitis suppurativa (HS) patients.
    • CCXI’s avacopan has been designated an orphan drug by the FDA for ANCA-associated vasculitis and C3G.
    • The European Commission awarded the company orphan medicinal product designations for avacopan, a medication used in the treatment of microscopic polyangiitis and granulomatosis with polyangiitis caused by ANCA.

    CCXI’s potential:

    ChemoCentryx (CCXI) discovered and developed avacopan, and it is the company that owns and retains the commercial rights in the United States. Vifor Pharma has exclusive rights to commercialize avacopan in markets outside of the United States under the Kidney Health Alliance between Vifor Pharma and CCXI.

  • Novan (NOVN) Stock Is Rising Premarket, Here Is What You Need to Know

    Novan (NOVN) Stock Is Rising Premarket, Here Is What You Need to Know

    At the time of the last check, shares of Novan Inc. (NASD: NOVN) were trading at $11.60, up 28.32% in premarket trading. Novan stock closed Thursday’s session at $ 9.04, up 2.03% from the previous session.

    NOVN stock volume remained at 1.16 million shares, which was higher than the average daily volume of 0.68 million shares over the past 50 days. In the past year, Novan stock has gone up by 84.49%, and in the past week, it has gone up by 15.60%. Positive clinical trial results have been driving NOVN stock prices up.

    NOVN trial: what was it for?

    Using its nitric oxide (NO) based technology platform, Novan is a clinical development-stage biotechnology company. By generating new chemical entities (NCEs) based on NOVN’s NITRICIL, the company aims to address unmet needs in dermatology, men’s and women’s health, infectious diseases, and gastroenterology.

    Novan SB206, a topical antiviral gel for the treatment of molluscum contagiosum (“molluscum”), has been found to be safe and effective in the B-SIMPLE4 pivotal Phase 3 clinical study, announced Novan today.

    NOVN-targeted Molluscum is a contagious skin infection caused by the molluscipox virus, affecting approximately six million Americans each year, with the highest incidence occurring among children aged one to fourteen. To discuss the study results, NOVN will hold a video webcast at 8AM ET, today, June 11, 2021.

    NOVN’s further plans:

    The successful implementation of B-SIMPLE4 represents a major milestone for NOVN, its employees, investors, and most importantly, people living with molluscum.

    In light of the positive safety and statistically significant efficacy results, Novan (NOVN) feels confident in preparing a New Drug Application to possibly bring SB206 to patients who require an effective therapy.

  • Has Appia (APAAF) Stock Risen Last Session For A Reason?

    Has Appia (APAAF) Stock Risen Last Session For A Reason?

    The stock of Appia Energy Corp [OTCQB: APAAF] surged 2.24% to $0.9000 at the previous close. Appia stock ranged in value from $0.1000 to $0.9630 during the past 52-week period. APAAF stock surged on appointment of global rare earths elements expert.

    Which APAAF member was appointed?

    Appia is a publicly-traded Canadian company focused on rare earth elements and uranium. On the Alces Lake property, APAAF is focusing on delineating critical rare earth elements (“REEs”) and uranium. In addition to its Loranger, North Wollaston, and Eastside properties, Appia has also started prospecting for uranium in the Athabasca Basin. In Saskatchewan, APAAF has surface exploration rights for 65,601 hectares.

    Appia On Monday, Appia announced Jack Lifton had agreed to join the Appia board of directors as a consultant and advisor.

    • The market fundamentals of technology metals are the specialty of Jack, a consultant, author, and lecturer.
    • The term technology metals refers to metals with electronic properties that make our technological society possible.
    • Rare earths, platinum group metals, lithium, graphite, and most rare metals and materials fall into this category.
    • In addition to advising the energy department and a number of companies, Jack is the leading rare earths expert in the United States.

    How will Jack’s joining APAAF benefit the company?

    Appia’s flagship Alces Lake critical rare earth elements project (“CREE”) is at a crucial juncture in its exploration/exploitation program. Appia (APAAF) is committed to being a key player in the development of a new global supply chain for rare earth elements, which are in short supply and high demand for use in permanent magnets as well as modern electronic applications such as wind turbines and electric vehicles. As a Strategic Advisor at Appia, Jack will no doubt bring his unrivaled knowledge of the rare earths industry to the APAAF.