Aethlon Medical, Inc. (NASDAQ:AEMD) Offering Spooks Investors

Aethlon Medical, Inc. (NASDAQ:AEMD)

Aethlon Medical, Inc. (NASDAQ:AEMD) fell 37.7% after announcing the pricing of a public offering of 5.5 million units. Each unit comprises of one share of common stock and a warrant for the purchase of one share of common stock. The therapeutic technology company expects the offering to generate gross proceeds of $6 million.

AEMD Stock Performance

Aethlon Medical, Inc. (NASDAQ:AEMD)

The company intends to use net proceeds from the offering to finance clinical development of its product candidates as well as for working capital and other general corporate purposes. Investors reacted angrily to the public offering, sending the stock lower in the market.

Aethlon Medical, Inc. (NASDAQ:AEMD) has already broken a key support level after plunging to multi-year lows of $0.96 a share. The stock has underperformed the overall industry this year after losing more than 70% in market value.

Investors’ confidence in the stock has turned sour ever since Aethlon Medical, Inc. (NASDAQ:AEMD) reported a second-quarter net loss of (-$1.8) million. Operating expenses in the quarter came in at $1.16 million compared to $1.14 million reported last year. The company attributed the increase to an increase in payroll and other related expenses.

A move to raise more money through the public offering does not come as a surprise as the company exited the second quarter with cash and cash equivalent of $327,000.

Hemopurifier EPA Designation

Separately, The U.S. Food and Drug Administration (FDA) has granted the therapeutic technology company an Expedited Access Pathway for the development of Hemopurifier, for the treatment for life-threatening viruses.

The agency normally grants the designation to products that demonstrate the potential to address unmet medical needs, especially in life-threatening conditions. The designation is designed to reduce the time and cost needed for the regulatory approval of a device or drug

Hemopurifier is designed to capture a broad spectrum of viruses that are highly glycosylated including strains of influenza viruses, Mosquito-borne viruses, and hemorrhagic viruses.

“We are honored to have our Hemopurifier® designated to the Expedited Access Pathway and additionally are pleased that FDA has also allowed our proposed “indication for use,” which provides the possibility of treating a wide range of life-threatening viruses versus a single disease condition,” said Jim Joyce, Chairman and CEO of Aethlon Medical.

In addition, the National Cancer Institute has granted Aethlon Medical, Inc. (NASDAQ:AEMD) a contract award worth $229,250. Dubbed ‘Device Strategy for Selective Isolation of Oncosomes and Non-Malignant Exosomes’ the contract calls for two subcontractors to work under the therapeutic technology company.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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