Neovasc Inc (NASDAQ: NVCN) is running for the top this morning after announcing that 4,885,266 Series C warrants have been exercised, generating a large chunk of funding for the company. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from NVCN as a result; and
- what we’ll be watching for ahead.
NVCN Announces $7.1 Million In Funding
As mentioned above, Neovasc is having an incredibly strong start to the trading session this morning after announcing that millions of Series C warrants have been exercised. In a press release issued early this morning, the company announced that it has received an investment of $7,132,488 as a result of 4,885,266 Series C warrants being exercised. These warrants were part of an underwritten public offering that took place in November of 2017.
In the release, NVCN explained that 10,273,972 Series C Warrants were issued during the transaction and that 5,388,706 of these warrants remain issued and outstanding. Series C Warrants under this offering may be exercised at a price of $1.46 and can be exercised until 11:59 PM on November 18, 2019. Each of these units includes one share of common stock, one Series A warrant, and one Series B warrant. In a statement, Chris Clark, CFO at NVCN, had the following to offer:
This receipt into Treasury is significant. We believe it is sufficient to substantially fund the Company for an additional four months at our current burn rate, until approximately early 2019, and increases our current cash on hand by almost 60%.
What We’re Seeing From the Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news released by Neovasc proved to be overwhelmingly positive. After all, this funding will greatly assist the company by improving its balance sheet and allowing it to continue to move forward on the development front. So, it’s no surprise to see that the stock is making a run for the top in the market this morning. At the moment (9:49), NVCN is trading at $0.059 per share after a gain of $0.007 per share (13.00%) 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 NVCN. In particular, we’re interested in following the company to see how it puts this more than $7 million to work. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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