astAstrotech Corp (NASDAQ: ASTC) is having an incredibly strong start to the trading session this morning, and for good reason. The CEO of the company as well as one of its larger shareholders have made a large investment in the company. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The investment news;
- what we’re seeing from ASTC stock as a result; and
- what we’ll be watching for ahead.
ASTC Gains On Large Investment
As mentioned above, Astrotech Corporation is having an incredibly strong start to the trading session this morning after the company announced that it has received a large investment. In a press release issued early this morning, the company said that it entered into and closed a private placement of the sale of its equity securities in the amount of $3 million before deducting expenses.
In the release, ASTC said that it plans on using the funds for working captial and general corporate purposes. Additional proceeds will be added to its balance sheet, giving the company the ability to fund its operating expenses and capital requirements into 2019.
In the release, ASTC disclosed that the company’s Chairman and CEO, Thomas B. Pickens III, purchased 866,950 shares of series B convertible perferred stock at an exercise price of $2.35 for a total aggregate price of $2.037 million. Also, the company said that a current shareholder purchased 409,645 shares of common stock at a price of $2.35 per share for total gross proceeds of approximately $963 thousand.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Astrotech, the news proved to be overwhelmingly positive. After all, when a CEO of a company makes such a large investment, it shows that their interests are aligned with investors. So, it comes as no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:16), ASTC is trading at $3.02 per share after a gain of $0.69 per share or 29.67% 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 ASTC. In particular, we’re interested in following the story surrounding the company’s use of this funding and what it does when it nears the year 2019 and more need for funding arises. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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