Atossa Genetics Inc (NASDAQ: ATOS) is making a run for the top in the market this morning, and for good reason. The company announced that its balance sheet has seen some improvement with the receipt of millions in funding.
Of course, the news excited investors, pushing the stock on a run for the top. Today, we’ll talk about:
- The funding;
- what we’re seeing from ATOS stock as a result; and
- what we’ll be watching for ahead.
ATOS Announces The Receipt Of Millions
As mentioned above, Atossa Genetics is having an incredibly strong day in the market today after announcing that it received funding. The announcement came via press release early this morning.
In the press release, the company announced that on March 14th and March 15th of this year, it received about $10 million from exercises of previously outstanding warrants. ATOS said that these warrants were issued by the Company in the rights offering that was completed in late-May of 2018.
Finally, the company said that as a result of the warrant exercises, the company retired 2.5 million warrants and issued 2.5 million shares of common stock.
In a statement, Kyle Guse, CFO and General Counsel at ATOS, had the following to offer:
The $10 million in cash proceeds significantly enhances our cash position and provides working capital for our ongoing and planned clinical studies.
Moreover, the warrant exercises are essentially ‘non-dilutive’ because the warrants were previously outstanding and are now removed from our overhang.
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. When it comes to Atossa Genetics, the news proved to be positive.
The exercise of the warrants led to an improved balance sheet, which is great news for investors. So, it’s not surprising to see that excited investors are pushing the stock for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:51), ATOS is trading at $4.87 per share after a gain of $1.36 per share or 38.75% 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 ATOS. In particular, we’re interested in following the story surrounding the company’s continued work to develop its product pipeline and provide value to investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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