Novus Therapeutics Inc (NASDAQ: NVUS) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it would be postponing a public offering. Of course, with dilution on hold, investors are excited, sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from NVUS as a result; and
- what we’ll be watching for with regard to the stock ahead.
NVUS To Postpone Offering
As mentioned above, Novus Therapeutics is having an incredibly strong start to the trading session this morning after postponing an offering. In a press release issued early this morning, the company said that it has elected to postpone a previously announced offering of common stock. In the release, NVUS said that the postponement is taking place due to market conditions, including valuation sensitivity associated with the current share price.
NVUS said in the report that it had $19.2 million in cash and cash equivalents as of June 30, 2018. With this amount on hand, the company believes that its current balance is sufficient to achieve several key milestones in 2019. This includes the completion of Phase 1 clinical trials with OP-02 in healthy adults and children with otitis media with effusion (OME), and adults with acute otitis media (AOM).
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 the case of NVUS, the news proved to be positive. After all, the offering would have greatly diluted shares. So, with the offering off of the table, share dilution is no longer a concern and investors are excited. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:54), NVUS is trading at $5.18 per share after a gain of $1.37 per share or 35.96% 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 NVUS. In particular, we’re interested in following the company’s clinical developments. Also, we know that at some point down the line, the company will need funding. So, we’re interested in seeing how it will access this funding. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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