Hancock Jaffe Laboratories Inc (NASDAQ: HJLI) is making a run for the top in the market today, following up on the strong gains that we say yesterday. The gains started after the company announced the completion of a private placement transaction.
Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The transaction completion;
- what we’re seeing from HJLI stock as a result; and
- what we’ll be watching for ahead.
HJLI Announces Transaction Completion
As mentioned above, Hancock Jaffe Laboratories is having a great day in the market today after announcing that it has completed a private placement transaction.
In a press release issued yesterday, the company said that it closed the private placement of 2,360,051 shares of common stock. The deal generated gross proceeds of approximately $2.7 million.
In the release, the company said that the transaction was completed with various accredited investors. One of the participating investors was a member of management at HJLI.
In the transaction, the company said that no warrants were issued. The company also said that it intends on using the proceeds for the continued development of its two lead candidates as well as working capital and for general corporate purposes.
The two lead candidates include the VenoValve and the CoreoGraft. The company’s VenoValve is designed to address chronic venous insufficiency, a condition caused by malfunctioning valves in the deep veins of the patient’s leg.
The CoreoGraft is a potential replacement for saphenous vein grafts. These are commonly used to revascularize the heart during coronary artery bypast graft surgeries.
In a statement, Robert Berman, CEO at HJLI, had the following to offer:
In advance of key milestones including preliminary data for our VenoValve® first in-human study, and our CoreoGraft® feasibility study, we wanted to strengthen our balance sheet and extend our operational runway.
We remain confident with our projected timeline for these two major milestones at the end of the second quarter of 2019, and this financing will insure that we are adequately capitalized through the release of our results.
What We’re Seeing From The Stock
One of the first things that we learn when we start to work in the market is that the news leads to moves. When it comes to Hancock Jaffe Laboratories, the news proved to be great.
After all, the closed transaction means that the company has brough necessary funding through the door that will allow it to continue development of its lead products, increasing value for investors.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:19), HJLI is trading at $2.42 per share after a gain of $0.68 per share or 39.34% 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 HJLI. In particular, we’re interested in following the story surrounding the company’s continued work to bring its CoreoGraft and VenoValve products to market. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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