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Tag: SNCA stock

  • Seneca Biopharma Inc (SNCA) stock soared in the pre-market trading session: here’s why

    Seneca Biopharma Inc (SNCA) stock soared in the pre-market trading session: here’s why

    Seneca BiopharmaInc (SNCA) stock recently traded at $1.69 which is a 0.59% downward movement. The SNCA stock previously closed at $1.70. SNCA stock also soared in the pre-market trading session by 8.88% at the time of writing.

    There is hype around the video released on 2nd April in which the Leading Biosciences, Inc. explains a detailed approach to a proposed merger with Senenca BiopharmaInc (SNCA). This is what has shareholders and investors of SNCA stock excited. The recent positive movement in the trading session could be a result of this proposed merger.

    Seneca’s operational background

    Seneca (SNCA) is a clinical-stage biopharmaceutical company which is specializing in the development of novel and uniquely approached treatments for the diseases that have high unmet medical need. The company has an experimental drug by the name of NSI 566 which is based on stem-cell therapy. This drug is for the potential treatment of ALS (Atmyotrophic Lateral Schlerosis). Furthermore, SNCA stock believes that the potential usage of NSI 566 can be used for the treatment of chronic spinal cord injury and the recovery of motor deficits after an ischemic stroke.

    Leading BioSciences’s focus on GI mucosal barrier

    Leading BioSciences, Inc. is a late-stage biopharmaceutical company that specifically designs novel therapeutics to improve the overall human conditions and health. LBS aims to do this through the therapeutic protection of the gastrointestinal (GI) muscosal barrier. After major surgery, the patients face an interruption of GI function (ileus) which can lead to a delay in recovery and extension in the hospital stay. This adds a high amount of medical and health bills for the patient.

    The therapeutics LBS are working on is aimed to reduce these interruptions of Ileus function and also reduce the need for post-operative recovery treatments and visits. Furthermore, there are many other chronic problems associated with GI mucosal barrier that LBS wish to address with its novel treatments.

    The definitive agreement details of the merger

    The video message released by Leading BioSciences’ CEO, Tom Hallam, provides a compelling investment thesis as to why a merger with Seneca BioPharma, Inc. is highly beneficial and mutual for the company and shareholders. SNCA stock had entered into a definitive merger with LBS on 17th December 2020. As part of the merger, SNCA wishes to sell off its rights to NSI-566. Upon completion of the merger, the combined company will have a new name under which it will operate – Palisade Bio Inc. This new name will have a ticker symbol PALI and trade on the NASDAQ market.

    CEO of LBS gives incentives to SNCA stockholders for merger voting

    Tom Hallam has given a brief overview of the vast market potential for the combined company Palisade Bio Inc. and has urged the SNCA stock shareholders to vote for the merger. This was guided to be done on April 9, 2021, on the virtual Special Shareholder Meeting that can be tracked. In detail, the CEO discussed about the long term overall degradation of SNCA stock’s performance which has the stockholders upset. He then proposes a beneficial opportunity for the stockholders of SNCA that they can maximize their investment value through Palisade Bio yet maintaining an 80% interest in the Seneca’s legacy asset through Contingent Value Right (CVR). This can be only done if stockholders vote for the proposed merger and each proposal at the meeting, as well as the condition of reverse split stock for closing the deal.

  • Why Seneca Biopharma, Inc. (SNCA) stock is falling today?

    Why Seneca Biopharma, Inc. (SNCA) stock is falling today?

    Seneca Biopharma, Inc. (SNCA) reported its financial results of year ended on December 30, 2020, after which the SNCA stock price saw a downtrend of 8.8614% today to drop at $1.841 a share as of this writing. Seneca stock was up by 23.17% at the previous closing with a $2.02 per share price.Let’s have a look at SNCA’s earnings report.

    Financial Results of 2020

    According to the report, Seneca suffered a $10.7 million operating loss for the year ended on December 30, 2020, which is significantly higher than the operating loss of $8.6 million in 2019.General and administrative expenses are mainly responsible for this increase as SNCA expanded its management structure to meet its objectives as well as professional fees for the proposed merger in 2020.

    Net loss in 2020 surged to $16.3 million or $1.17 per share nearly double the net loss of $8.4 million or $3.80 per share in 2019.The reason for this increase is partiallythe same as discussed for operating loss and partially due to $5.6 million of non-cash expense in connection withthe January 2020 warrant inducement offering.

    As of December 31,2020, Seneca had cash of $10.5 million as compared to $5.1 million at the end of the previous year.

    Business Developments

    It seems that Seneca Biopharma has continued its development over the year. SNCA entered into the definitive merger agreement with BioSciences, Inc. (LBS), completed offerings of over $14.7 million, completed the last subject’s follow-up assessment of its non-GCP Phase II trial for NSI-566 to treat chronic ischemic stroke, and succeeded to license NSI-189.

    Conclusion:

    Things are going against the penny SNCA stock as far as market sentiment is concerned but no one knows how long this situation will persist.Yearly results have shown the increase in operating as well as net losses for the SNCA stock while business development suggests that SNCA stock has grown over the year.It is better to practice to research the company’s fundamentals, balance sheet, and recent as well as future developments before taking any decision.

  • Seneca Biopharma Inc. (SNCA) stock rises in after-hours. Let’s find out why:

    Seneca Biopharma Inc. (NASDAQ: SNCA) stock declined by 6.29% in the last trading close, whereas the SNCA stock price rises by 17.68% during after-hours. This change in SNCA stock is not followed by any recent news except for the significant past development i-e the merger agreement started between Seneca Biopharma and Leading Biosciences. This agreement has been acting as a catalyst for Seneca Stock price. Seneca Biopharma is a pharmaceutical company that deals with the development of treatments for high-risk diseases and to cater to other medical needs.

    The merger agreement between SNCA & LBS

    Seneca Biopharma entered into a merger agreement with Leading Biosciences in December 2020. Leading Biosciences is a private company that focuses on novel therapeutics aimed at enhancing human health by shielding the gastrointestinal mucosal barrier.

    On December 17, SNCA officially announced its merger agreement, according to which Seneca is planning to sell off its rights to NSI-566. Also, the company will come under the banner of Palisade Bio, Inc. and will trade under the ticker symbol PALI on the Nasdaq Capital Market. This newly formed company will work on Leading’s pipeline phase-3 ready asset, LB1148. SNCA turned PALI after the merger, will test and evaluate LB1148 in clinical trials to see whether it can restore normal GI function after major surgery and reduce postoperative complications, including abdominal adhesions.

    Now what?

    SNCA, on March 17, announced that leading independent proxy advisory firm Institutional Shareholder Services, Inc. has suggested the stockholders of SNCA support the merger by voting FOR it. The leading independent proxy advisory firm also said that the SNCA stockholders should vote FOR the proposals for:

    • issuance of shares in connection with the merger
    • reverse stock split

    Seneca’s special meeting of stockholders is set to happen on March 24, 2021. Upon this support from Institutional shareholders services Inc., the chairman of SNCA said that they are incredibly thankful to ISS and also believe that this merger will be highly beneficial for SNCA as well as for its stockholders.