AcelRx Pharmaceuticals Inc (NASDAQ: ACRX) is having an overwhelmingly strong start to the trading session this morning after the company announced that shares owned by Three Arch Partners have been acquired in a private deal. Of course, the news led to excitement among investors, sending the stock upward. Today, we’ll talk about:
- The share acquisition;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for with regard to ACRX ahead.
ACRX Announces Private Acquisition Of Shares
As mentioned above, AcelRx Pharmaceuticals is having an incredibly strong start to the trading session this morning after announcing the private acquisition of shares. In a press release issued early this morning, the company announced that all of its shares owned by Three Arch Partners III, L.P., Three Arch Associates III, L.P., Three Arch Partners IV, L.P., and Three Arch Associates IV, L.P., were acquired. The acquisition was made by investors led by Leerink Revelation Partners and Industry Ventures. The total amount of ACRX shares included in the acquisition came to 9,367,041. It is important to note that the company did not receive any proceeds from the transaction.
In a statement, Scott Halsted, Managing Partner at Leerink Revelation Partners, had the following to offer:
We’re excited to step into Three Arch’s position as a leading shareholder of AcelRx and we’re looking forward to the Company creating significant value for all AcelRx shareholders.
The above statement was followed up by Vince Angotti, CEO at ACRX. Here’s what he had to offer:
We welcome our new shareholders and are appreciative that Three Arch was able to agree to the sale of its position to long-term shareholders that understand the potential value in AcelRx… We remain on track to achieve the remaining key milestones this year, with the expectation of another approved product in Europe and our first approved product in the U.S. with DSUVIA™.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that it’s important to keep a close eye on the news. After all, the news moves the market. While AcelRx did not receive proceeds from this transaction, the purchase of such a large chunk of shares shows confidence in the growth of the company by big money players on Wall Street. So, it’s no surprise that the transaction is proving to be a source of excitement for investors. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:38), ACRX is trading at $3.10 per share after a gain of $0.20 per share (7.07%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ACRX. In particular, we’re interested in following the story surrounding the company’s movements with a new large shareholder in the race. Not to mention, the fact that the company has a potential approval just around the corner. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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