Big Move for Cesca Therapeutics Inc (NASDAQ:KOOL)

Cesca Therapeutics Inc (NASDAQ:KOOL)

Cesca Therapeutics Inc (NASDAQ:KOOL)

Shares of Cesca Therapeutics Inc (NASDAQ:KOOL), headquartered in Rancho Cordova, CA, jumped over 11% today after the biotech firm announced that it had entered into an asset acquisition agreement with SynGen Inc., a privately held technology company that specializes in cellular processing. Cesca Therapeutics Inc (NASDAQ:KOOL) normally is thinly traded. KOOL’s 30-day, daily average volume is listed at less than 18,000 shares per day. However, today over 1.1 million shares traded hands.

Cesca Therapeutics Inc (NASDAQ:KOOL) made the acquisition through its wholly owned subsidiary, ThermoGenesis Corp. is a technology supplier for the processing and storage of stem cells and other biological tissues. Cesca Therapeutics Inc (NASDAQ:KOOL) develops and commercializes processing systems that separate, process and preserve cell and tissue therapy products, particularly targeting regenerative medical needs.

As part of the acquisition, ThermoGenesis compensated SynGen with 20% of its common stock and paid $1 million in cash. Philip H. Coelho, co-founder and Chief Technology Officer of SynGen, will become the CTO of ThermoGenesis effective immediately.

Dr. Chris Xu, chairman and interim chief executive officer of Cesca Therapeutics stated “The acquisition of SynGen’s portfolio of commercial products and intellectual property solidifies ThermoGenesis’ position as a leading developer of automated cellular processing systems. With the integrated product pipeline, ThermoGenesis can now offer a comprehensive suite of automated manufacturing solutions to CAR-T developers. We can also expand our ThermoGenesis portfolio of point-of-care and laboratory-based systems that have become essential tools in this rapidly-growing field of medicine.”

Cesca Therapeutics Inc (NASDAQ:KOOL) is down over 6% YTD, but up over 12% for the year. Sales have been in steady decline since 2012 when the company reported $19 million in sales. That figure dropped annually and in 2016 was just $11.9 million. Shareholders have had a rough ride as well. Cesca has reported losses every year since 2012 when they reported a per share loss of $6.09. In 2016, the loss per share was $7.57. The sole investment firm that rates KOOL shares gives them a “Hold” with a $2 price target – abut $1.60 below current levels.

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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