Shareholders of Apricus Biosciences Inc (NASDAQ:APRI) watched their stock drop over 12% Friday to $0.350 on news of an institutional offering of 13.1 million shares at $0.35 each.
Investors in the issue will also receive a warrant to purchase 0.75 shares at an exercise price of $0.45 per share, exercisable six months after the issue closing but not later than five years.
The registered direct offering will raise $4.6 million for Apricus, which manufactures Vitaros, a treatment for erectile dysfunction. The company will use the proceeds for working capital and corporate purposes.
The issue, and the resultant price action, adds to the pain for Apricus shareholders. The stock has slumped 77% over the past year, though it has clawed back 25% from its 52-week low of $0.28. The company’s market capitalization is just $23.20 million.
Apricus Biosciences Inc (NASDAQ:APRI) may turn the corner in 2017
For the second quarter, the company reported EPS of (-) $0.05 which beat street expectations by $0.03. However, quarterly revenue of $0.46 million missed by $1.06 million.
It is also seeking to reduce operating expenses and grow revenues with the ultimate objective of achieving profitability in 2017.
As of June 30, Apricus had cash and cash equivalents of $2.7 million.
The company is focused on obtaining USFDA approval for Vitaros, and has been granted a Type B meeting with the FDA, scheduled for November 17, 2016.
The drug is approved in Canada and certain countries in Europe, Latin America and the Middle East, and is being commercialized in several countries in Europe.
RayVa, its product candidate for the treatment of the circulatory disorder Raynaud’s phenomenon, is the company’s sole active product candidate.
On the weekly chart, Apricus is showing signs of bottoming out, and a trend of higher highs and higher lows over the last two months. Encouragingly, the uptrend is accompanied by rising volume.