Marathon Patent Group Inc. (NASDAQ:MARA)’s Q3 Revenues Grows 280%

Marathon Patent Group Inc. (NASDAQ:MARA)

Marathon Patent Group Inc. (NASDAQ:MARA) traded higher after the company reported Q3 financial results that beat Wall Street expectations. Shares of the company gained 5.04% in Monday’s trading session to end the day at $1.46 a share.

Marathon Patent Group Inc. (NASDAQ:MARA)

MARA Stock Performance

The company generated revenues of $163 million for the three months ended September 30, 2017, up from revenues of $43,000 reported in Q3 2016. Operating loss for the period dropped to $3.9 million, compared to $10.7 million reported last year.

Despite the 5% rally, Marathon Patent Group Inc. (NASDAQ:MARA) is still trading in a downtrend. The IP licensing company has shed more than 70% in market value and is currently trading near its 52-week low of $0.50 a share.

Last month, the company was forced to initiate a reverse stock-split of its common stock in a bid to shore up its share price. The split was primarily intended to bring the company in compliance with the minimum average closing share price for continued listing in the NASDAQ Capital Market. A 4:1 reverse stock-split consequently reduced the company’s common stock from approximately 32.4 million shares to approximately 8.6 million shares.

Investor’s sentiments on the stock appear to have hit all-time lows despite the company making huge strides on revenue growth. It awaits to be seen if the stellar Q3 financial results is the catalyst that will help push the stock from current lows.

GBV Acquisition

In a bid to strengthen investor confidence in the stock, Marathon Patent Group Inc. (NASDAQ:MARA) announced the acquisition of Global Bit Ventures. The acquisition is part of the company’s plan to diversify its areas of operations. The company is currently eyeing growth opportunities in the digital currency space with the acquisition.

Global Bit Ventures joins Marathon Patent Group Inc. (NASDAQ:MARA) with a robust infrastructure around cryptocurrencies, with significant capability for expansion. The company boasts of a technology that powers and secures blockchains by operating custom hardware and software. It also owns 250GH/s of GPU mining servers.

“We previously expressed our intent to review alternative business directions with the goal of enhancing shareholder value. We believe the acquisition of Global Bit Ventures will take advantage of an ongoing revolution in digital transactions conducted on blockchains as we see increasing adoption and proliferation of blockchain protocols in our everyday lives,” said CEO, Doug Croxall.

According to GBV CEO, the merger marks an important milestone and sets the company on course for accelerated revenue growth

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. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Jaguar Health Inc. (NASDAQ:JAGX)

Jaguar Health Inc. (NASDAQ:JAGX) Reports Stellar Q3 Financial Results

Jaguar Health Inc. (NASDAQ:JAGX)

Jaguar Health Inc. (NASDAQ:JAGX) fell 2.7% after reporting its first quarterly financial results after merging with Napo Pharmaceuticals. The commercial stage natural-products pharmaceuticals company generated a net income of $4.75 million for the three months ended September 30, 2017.

Jaguar Health Inc. (NASDAQ:JAGX)

Jaguar’s Revenue Growth

Jaguar Health Inc. (NASDAQ:JAGX) is still trading in a downtrend despite posting stellar financial results for the third quarter. The stock has shed more than 50% in market value since the start of the year as short sellers continue to push the stock lower. It awaits to be seen, the kind of impact that the Napo Pharmaceuticals merger will have on investor sentiments in the stock heading into the year-end.

According to data compiled by Zacks Investment Research, despite the underperformance, Jaguar Health Inc. (NASDAQ:JAGX) is currently rated as a “Strong Buy” by two analysts.

Net revenue in the quarter came in at $1.1 million made up of $346,000 for Mytesi, $82,000 for Neonorm and approximately $655,000 in collaboration revenue. Total net revenue for the third quarter of 2016 was $50,000. Average sales of Mytesi have increased over 50% since August.

“With the onboarding of three additional HIV sales personnel this month, and the refilling rate of Mytesi® prescriptions for a chronic disease, we expect continued growth for future Mytesi® sales,” said Lisa Conte, Jaguar Health Inc. (NASDAQ:JAGX)’s president, and CEO.

Mytesi revenue continues to increase because of increased marketing, advertising, medical education and promotional activities. Mytesi is a prescription treatment for diarrhea that works by normalizing the flow of water in the GI tract. It is the only FDA approved antidiarrheal therapy for the symptomatic relief of non-infectious diarrhea in adult patients.

For the first nine months of the year, revenue increased to $2.8 million compared to $113,000 reported last year. Jaguar Health Inc. (NASDAQ:JAGX) expects further growth in revenue heading into the year-end due to an increase in human-product revenue.

HIV Scientific Advisory Board

Separately, Dr. Roscoe Moore has joined the HIV Scientific Advisory board recently formed by Jaguar Health Inc. (NASDAQ:JAGX)’s wholly owned subsidiary, Napo Pharmaceuticals. The board will focus on physician education and global awareness regarding the importance and availability of solutions for neglected comorbidities.

“Neglected comorbidities such as HIV-related diarrhea play a significant role in patient adherence to ART Efforts to expand awareness about available solutions, such as Mytesi®, that address specific comorbidities play an important role in maximizing health and wellness in this population,” said Dr. Moore.

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. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Egalet Corp (NASDAQ:EGLT) Awarded Grant

Egalet Corp (NASDAQ:EGLT)

Shares of Egalet Corp (NASDAQ:EGLT) gained 1.49% after the company received a grant for the development of a novel oral delivery system for targeting therapeutic areas outside of pain. The grant from InnoBooster is for the development of a delivery system using the company’s Guardian technology.

Egalet Corp (NASDAQ:EGLT)

InnoBooster Grant Award

According to the Chief Executive Officer, Karsten Lindhardt, the grant provides non-dilutive funds for the research project. The funds will cover most of the external expenses needed for the preclinical stage of development.

“We believe the grant from InnoBooster demonstrates the breadth of applications of our Guardian Technology. This provides a fantastic opportunity for us to use a novel approach to potentially develop oral formulations of products that would normally be delivered via injection,” said Mr. Lindhardt.

Egalet Corp (NASDAQ:EGLT) continues to trade in a downtrend despite receiving support from a string of positive news in recent weeks. The specialty pharmaceutical company has shed more than 80% in market value since the start of the year. EGLT stock is currently languishing near its all-time lows and in dire need of a catalyst to motivate buyers .

Egalet-002 Development

Investor sentiments in the stock recently received a boost after the company reported topline results from a Phase 3 safety study evaluating safety of Egalet-002. The company is investigating Egalet-002 as an abuse deterrent using its proprietary Guardian Technology.

Trial results indicate that the abuse deterrent formulation was well tolerated. Adverse events reported were consistent with outcomes expected following treatment with oxycodone formulation.

“We believe the positive phase 3 safety study result validates this unique application of our Guardian Technology which was used to develop our abuse-deterrent, extended-release oxycodone, Egalet-002Given the ongoing issues of chronic pain and prescription abuse, we continue to believe there is a need for products like Egalet-002,” said CEO, Bob Radie.

In addition, Egalet Corp (NASDAQ:EGLT) is evaluating the safety and efficacy of Egalet-002 in patients with moderate-to severe chronic pain. The specialty pharmaceutical company exited the quarter with cash and cash equivalent of $102.1 million. According to the Chief Executive Officer, the cash balance and increased focus on non-narcotic innovative treatments strategically positions the company to play an important role in the prescription abuse crisis.

Separately, Egalet Corp (NASDAQ:EGLT) reported a net loss of (-$18.9) million or (-$0.46) a share for the three months ended September 30, 2017 compared to a net loss of (-$26.9) million reported last year. Net revenue in the quarter increased to $6.7 million from $4.7 million as of Q3 2016.

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.

Don’t miss out! Stay informed on $EGLT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Cytori Therapeutics Inc. (NASDAQ:CYTX)

Cytori Therapeutics Inc. (NASDAQ:CYTX) Posts Positive Study Results

Cytori Therapeutics Inc. (NASDAQ:CYTX)

Cytori Therapeutics Inc. (NASDAQ:CYTX) fell 9.1% in after-hours trading following an announcement concerning a reduction in Fibrosis parameters in a scar study using its cell therapy. The study was performed as a preclinical proof of concept in partnership with the Biomedical Advanced Research and Development Authority.

Cytori Therapeutics Inc. (NASDAQ:CYTX)

Scar Study Results

During the pre-clinical trials Adipose-Derived Regenerative Cells, an active component of Cytori Therapeutics Inc. (NASDAQ:CYTX), was injected into deep partial thickness wounds in a porcine model. Six months after injection, wounds treated with ADRCs showed a significant reduction in parameters associated with hypertrophic scarring.

Some of the parameters improved by Cytori Therapeutics Inc. (NASDAQ:CYTX) cell therapy include skin hardness, organization, vascularity and discoloration. Impressed by the results, the therapeutics company plans to carry out a RELIEF trial to assess the therapy in human patients with substantial thermal burn injury. The trial will also evaluate several scar-related parameters.

Treatment of thermal burns is a critical unmet medical need as patients often suffer from pain, scarring and skin contracture on using standard care.

Fibrosis is a common factor in both burns and scleroderma.” said Dr. John Fraser, Chief Scientist at Cytori Therapeutics Inc. (NASDAQ:CYTX). “This preclinical study is consistent with a number of emerging studies indicating a beneficial effect of Cytori ADRC technology in fibrotic disease.”

CYTX Stock Performance

Cytori Therapeutics Inc. (NASDAQ:CYTX) is currently trading in a downtrend, after reporting a third-quarter net loss that appears to have spooked investors. The therapeutics company focused on regenerative and oncologic therapies has underperformed the overall industry this year. The stock is down by more than 70% as it continues to trade near its 52-week low of $0.28 a share.

Investor confidence in the stock has taken a hit on the company reporting revenues of $1.8 million for the third quarter, down from $2.6 million reported last year. Revenue for the first nine months of the year also dropped to $4.9 million from $8.4 million as of last year.

Net loss for the three months ended September 30, 2017, dropped to (-$4.8) million or (-$0.14) a share, compared to (-$5.4) million or (-$0.26) a share reported last year. Cash burn in the quarter stood at $4 million compared to $4.6 million. Cytori Therapeutics Inc. (NASDAQ:CYTX) expects the cash burn for the full year to be slightly lower at between $17 million and $19 million compared to $20 and $23 million as of last year.

Cytori Therapeutics Inc. (NASDAQ:CYTX) plans to pursue a meeting with the U.S. Food and Drug Administration to determine the next step required for regulatory approval of Habeo Cell Therapy for scleroderma-associated hand dysfunction. The company also plans to begin patient enrollment for RELIEF burn clinical trial.

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.

Don’t miss out! Stay informed on $CYTX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Eleven Biotherapeutics Inc (NASDAQ:EBIO)

Eleven Biotherapeutics Inc (NASDAQ:EBIO) Reports Q3 Earnings

Eleven Biotherapeutics Inc (NASDAQ:EBIO)

Eleven Biotherapeutics Inc (NASDAQ:EBIO) shares dropped over 7%, on heavy volume, after the biotech company reported their Q3 2017 financial results. EBIO shares opened at $0.74, then dropped to a low of $0.64 before closing at $0.69. At current levels, EBIO shares are trading below their published cash per share value of $0.71, and their book value per share figure of $1.05.

Eleven Biotherapeutics Inc (NASDAQ:EBIO)

Eleven Biotherapeutics Inc (NASDAQ:EBIO) is a late-stage, clinical oncology company that develops therapies for cancer patients based upon the company’s proprietary targeted protein therapeutics (TPTs) platform. The company’s TPTs incorporate a tumor-targeting antibody fragment and a cytotoxic protein payload within a single protein molecule in order to achieve focused tumor cell killing. Eleven Biotherapeutics believes its TPT approach offers significant advantages in treating cancer over existing antibody drug conjugate technologies. Eleven Biotherapeutics promotes the idea that its TPTs provide effective tumor targeting with broader cancer cell-killing properties than generally achievable other treatments that require tumor cell proliferation to be effective and can face challenges overcoming multi-drug resistance mechanisms within tumor cells.

In November, Eleven Biotherapeutics Inc (NASDAQ:EBIO) completed a public offering of 5,525,000 shares of its common stock, pre-funded warrants to purchase an aggregate of 4,475,000 shares of common stock, and common warrants to purchase up to an aggregate of 10,000,000 shares of common stock, raising approximately $8.0 million in gross proceeds and $7.0 million in net proceeds.

Eleven Biotherapeutics Q3 Earnings

Eleven Biotherapeutics Inc (NASDAQ:EBIO) did not record any revenue for Q3 2017. In Q3 2016, the company reported revenue of $28.7 million. This difference was due to revenue recognized in 2016 from the company’s license agreement with Roche. Roche’s next licensing milestone payment will be triggered upon commencement of a Phase 2 clinical trial by Roche.

Net loss for Q3 2017 was (-$9.1) million, or (-$0.37) per share, versus net income of $19.5 million, or $0.95 per basic share and $0.91 per diluted share, for the same period in 2016. The change was primarily the result of revenue recognized in 2016 from the company’s license agreement with Roche.

Research and development expenses were $3.6 million, compared to $2.8 million for the same period in 2016. Cash and cash equivalents were $11.3 million.

EBIO Stock Performance

Per share earnings for the biotech company have been on an upward trend ever since 2013, when the company reported a loss of (-$16.19). Losses contracted annually and in 2016 a EPS profit of $0.01 was posted. Last year, due to the Roche licensing agreement, the company reported some sales of $30 million. A number that that could be considered “material” for the first time in its existence. However, the company has a consistent history of diluting shareholder equity. In 2013 the number of outstanding shares stood at 1.35 million, then continued to expand on an annual basis. In 2016 the company ended the year with 21.08 million shares outstanding.

For the year, EBIO shares have lost 70%, and, for the month, the shares have lost 45% in value. Despite performance that lags the markets, and its sector, EBIO shares are rated “Market Perform” and “Strong Buy” by the two investment firms that follow the company. Their consensus, one-year price target is $12.

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.

Don’t miss out! Stay informed on $EBIO and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: 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.

xG Technology Inc (NASDAQ:XGTI),

xG Technology Inc (NASDAQ:XGTI) Wins U.S. Army Contract, Shares Jump

xG Technology Inc (NASDAQ:XGTI)

xG Technology Inc (NASDAQ:XGTI) shares are up 5%, to $1.73, on heavy volume, after the wireless video technology company was awarded a $12.5 million contract by the U.S. Army. The contract includes hand-held equipment that displays real-time video imagery. The estimated completion date of for the supply of hand-held intelligence, surveillance, and reconnaissance receiver devices is September 24, 2020. This is the third similar contract awarded to the company by the U.S. Army in the last four years.

xG Technology Inc (NASDAQ:XGTI),

xG Technology’s brands provide wireless video solutions to broadcast, law enforcement, and defense markets, and private mobile broadband networks for use in difficult environments. xG’s stable of brands includes Integrated Microwave Technologies (IMT), Vislink, and xMax. IMT has pioneered advanced digital microwave systems and supplies its technology to the sports and entertainment broadcast industry and MAG (Military, Aerospace & Government) markets.

George Schmitt, Executive Chairman and CEO of xG Technology Inc (NASDAQ:XGTI), said, “We are honored to have been chosen by the U.S. Army to fulfill this important contract. It is a huge game changer that underscores our proven expertise in designing and delivering best-in-class wireless video communications solutions that enhance tactical insights. We will work closely with the Army to ensure they gain maximum effectiveness of our equipment in conducting their operations. We look forward to commencing product deliveries, and have already manufactured 50 units that are ready to ship as needed to our forces overseas.”

XGTI Stock Performance

xG Technology Inc (NASDAQ:XGTI) has a market capitalization of over 22.5 million and a stock float of just 12.8 million shares. There is a moderate short position held by traders that amounts to almost 12% of the total float. It has a book value per share of $2.46, so at current levels, XGTI is trading at a discount to that metric.

For the past year, XGTI stock has lost over 51%, however the shares are up 22% year-to-date, and up 7.8% for the past week. This past July, Maxim Group initiated coverage of the company and rated XGTI shares as a “Buy”. Prior to that rating, Roth Capital has, in January, raised the rating on XGTI shares from a “Neutral” to a “Buy”. Their consensus, one-year price target is $4.

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.

Don’t miss out! Stay informed on $XGTI and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: 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.

Digital Ally, Inc. (NASDAQ:DGLY)

Digital Ally, Inc. (NASDAQ:DGLY) Jumps on Court Decision

Digital Ally, Inc. (NASDAQ:DGLY)

Shares of Digital Ally, Inc. (NASDAQ:DGLY) are up 18% after the company won a court ruling which should send the issue to trial. The market reacted favorably to the decision by the Federal District Court of Kansas after it rejected the request of Axon Enterprise, Inc. (Axon) to maintain the stay of the patent lawsuit brought against it by Digital Ally.

Digital Ally, Inc. (NASDAQ:DGLY)

Digital Ally, headquartered in Lenexa, KS, specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Its products are distributed globally. The company’s products include in-car and body cameras, cloud and local management software, and automatic recording technology. The products have been designed to work seamlessly together.

On November 8, 2017, the company’s Board of Directors decided to explore strategic alternatives. Avenues may include monetizing its patent portfolio and related patent infringement litigation against Axon, the sale of Digital Ally as a whole, or the sale of select properties or groups of properties or individual businesses. The result of the strategic review may also include the continued implementation of the company’s business plan. The Company has retained Roth Capital Partners LLC to assist in this process.

Digital Ally Accused of Patent Infringement

The litigation between Digital Ally, Inc. (NASDAQ:DGLY) and Axon involves two patents — the ‘452 Patent and U.S. Patent No. 8,781,292 (“the ‘292 Patent”). The ‘452 Patent generally covers the automatic activation and coordination of multiple recording devices in response to a triggering event such as a law enforcement officer activating the light bar on the vehicle. Within the Axon product family, the “Signal” component is responsible for this functionality. The ‘292 Patent is asserted against Axon’s Signal Performance Power Magazine (SPPM) – a battery pack that incorporates Signal and is designed to activate one or more body cameras when the safety of a conducted electrical weapon is deactivated.

On July 6, 2017, the U.S. Patent Office denied Axon’s petition for inter partes review of Digital’s ‘452 Patent. On August 3, 2017, the Patent Office denied Axon’s final petition for IPR of the ‘452 Patent. This was Axon’s final attempt to invalidate the ‘452 Patent before the Patent Office.

Last Friday, November 17, 2017, the Court rejected Axon’s request and lifted the stay of the litigation. In ruling on the motion regarding the stay, the Court found that the evidence submitted by Digital Ally, Inc. (NASDAQ:DGLY) “weigh heavily against continuing the stay of the ‘452 patent” and that “the Court denies Defendant’s [Axon’s] request to continue the stay of this case with respect to the ‘452 patent.” The Court has set a hearing for December 14, 2017, to discuss a schedule for moving the case forward to trial.

DGLY Stock Performance

Digital Ally, Inc. (NASDAQ:DGLY) has a market capitalization of $16.1 million and a float of just 5.73 million shares. This makes it a frequent subject of day-trading chat rooms and frequent jumps in trading volume.

Year-to-date, DGLY stock has lost over 44% but is up 4.5% for the past week. It has a consensus, one-year target price of $6 – a price which was established early in 2017 and is also its 52-week high. Since then, the stock has largely slid downwards to $1.70, its 52-week low which was hit earlier this month.

Three investment firms cover Digital Ally, Inc. (NASDAQ:DGLY). Two rate DGLY stock as a “strong Buy”, while one rates the shares as a “Hold”.

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.

Don’t miss out! Stay informed on $DGLY and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Acasti Pharma Inc (NASDAQ:ACST)

Acasti Pharma Inc (NASDAQ:ACST) Booms on Possible Deal

Acasti Pharma Inc (NASDAQ:ACST)

Acasti Pharma Inc (NASDAQ:ACST) stock was up over 155%, to $3.25, before retreating in the first 45 minutes of trading to the $2.25 handle for a 75%+ gain over Friday’s close of $1.27. Volume has been massive – almost 1,900 times the daily average. The move comes after the biopharmaceutical company announced entering into a non-binding, licensing term sheet with a leading China-based pharmaceutical company.

Acasti Pharma Inc (NASDAQ:ACST)

Acasti Pharma Inc (NASDAQ:ACST), headquartered in Quebec, Canada, is a biopharmaceutical company that is developing the cardiovascular drug, CaPre (omega-3 phospholipid), for the treatment of hypertriglyceridemia. This condition affects an estimated one third of the U.S. population. The company’s strategy is to initially develop and commercialize CaPre for the 3 to 4 million patients in the U.S. with severe hypertriglyceridemia.

Acasti Deal

At this stage, the licensing deal is non-binding. Upon its execution, the proposed term sheet expects that Acasti would receive an upfront payment of $8 million, additionally there would be regulatory and commercial milestone payments in excess of $125 million, and tiered double-digit royalties on net sales.

The deal grants an exclusive license to the Chinese pharmaceutical company to commercialize CaPre in China and other specified Asian countries. With the high prevalence of hypertriglyceridemia in Asia, this potential partnership presents a significant commercial opportunity for both Acasti Pharma Inc (NASDAQ:ACST) and CaPre.

Acasti’s press release specifies that the deal is not yet agreed to, and conditions and terms may change from those that have been released to the public.

ACST Stock Performance

Shares of Acasti Pharma Inc (NASDAQ:ACST) have been largely flat for the year, losing 5.2% prior to today’s price action. It has been trading in a range between $1.20 and $1.40 for most of 2016 and 2017, but briefly spiked to hit a 52-week high of $2.46.

In August, the company reported its Q1 2018 financial results. Its net loss was C(-$2.8) million or C(-$0.19) per share which was an improvement on its performance for the same period of the prior year when the loss was C(-$3.2) million or C(-$0.29) per share.

Acasti Pharma Inc (NASDAQ:ACST) has a low float figure of 8.1 million shares which makes it a favorite of momentum traders. ACST stock has a Relative Strength Index score of 90 which places it well into the metric’s range that most observers consider to be in “overbought” status.

ACST shares have a listed one-year target share price of $8.21.

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.

Don’t miss out! Stay informed on $ACST and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Heat Biologics Inc. (NASDAQ:HTBX)

This Is Why Heat Biologics Inc. (NASDAQ:HTBX) Dropped 16%

This Is Why Heat Biologics Inc. (NASDAQ:HTBX)

Shares of Heat Biologics Inc. (NASDAQ:HTBX) fell 16.9% after the biopharmaceutical company priced 5.8 million shares, for a common stock offering. The company has priced the offering at $0.43 a share, slightly below the stock’s current price.

Heat Biologics Inc. (NASDAQ:HTBX)

In addition, the company has granted underwriters a 45-day option for the purchase of up to 872,093 shares of common stock at the public offering price. The company expects gross proceeds of approximately $2.5 million before deduction of underwriting discounts and commissions. The offering should close on or about November 21, 2017.

Heat Biologics Inc. (NASDAQ:HTBX) plans to use the net proceeds from the offering to fund its subsidiaries’ pre-clinical and clinical programs and for working capital and general corporate purposes.

HTBX Investor Reaction

News of the public offering did not go well with current investors as it will dilute their current holdings even though the company tries to use it to shore up its balance sheet. Investors’ confidence in the stock is dropping and threatens to push Heat Biologics Inc. (NASDAQ:HTBX) to its 52-week low of $0.41 a share. Heat Biologics has underperformed the overall industry and is currently down by more than 40% for the year

Despite the underperformance, Griffin analyst Keith Markey remains bullish about the stock’s long-term prospects. The analyst has a ‘buy’ rating on the stock with a share price target of $2.25. The price target represents an upside potential of more than 270%.

“Heat Biologics has developed a T cell activation platform (TCAP) to initiate or enhance an immune attack against solid tumors. [..]As such, we view the Company’s immunotherapies to be far more sophisticated than “vaccines” that also use an antigen-based approach to stimulate the immune system,” said Mr., Markey.

Heat Biologics Q3 Financials

Separately, Heat Biologics Inc. (NASDAQ:HTBX) reported a wider than expected net loss of (-$2.3) million or $0.06 a share, compared to a net loss of (-$1.6) million reported last year. Research and development expense increased 8% to $1.8 million primarily due to Chemistry Manufacturing and Control activities.

During the quarter, the company signed a manufacturing agreement with KBI Pharma that will advance the development of its cancer targeting immunotherapies.

“We had a very productive third quarter, as we achieved a number of important milestones,” said Jeff Wolf, CEO of Heat. “We signed a critical manufacturing agreement to further advance our co-stimulatory programs, and we were also granted a Type C meeting with the FDA to review our Phase 2 clinical trial using our HS-110 for the treatment for non-small cell lung cancer

Heat Biologics Inc. (NASDAQ:HTBX) exited the quarter with cash and cash equivalent of approximately $4.3 million.

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.

Don’t miss out! Stay informed on $HTBX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Viva Entertainment Group Inc. (OTCMKTS:OTTV)

Viva Entertainment Group Inc. (OTCMKTS:OTTV) Eyes Latino Market

Viva Entertainment Group Inc. (OTCMKTS:OTTV)

Viva Entertainment Group Inc. (OTCMKTS:OTTV) shares gained 11.9% after the distributor of Over-The-Top IPTV content announced the signing of a 3-year license agreement with Oi2Go Media Technologies. Under the terms of the agreement, the company is to provide a mobile subscription app for streaming Latino content in the American market.

Viva Entertainment Group Inc. (OTCMKTS:OTTV)

Oi2Go Licensing Agreement

Viva Entertainment Group Inc. (OTCMKTS:OTTV) is to include its on-demand pay-per-view content library, content library, and subscription channels as part of the agreement. The license runs through 2020 and builds on a previously signed agreement for the formation of a joint venture with Oi2 Media.

“Since signing the original joint venture with Oi2 Media, we have been working with them to develop a content-rich platform for the Latino market. Being based out of South Florida, we are very familiar with the growing Latino market for streaming content,” said CEO Johnny Falcones.

Targeting the Hispanic and Latino market presents a unique opportunity for Viva Entertainment given that there are about 50 million customers that are reportedly not adequately served by the industry. The company’s library and live programming already boasts a large quantity of Latino content.

Viva Entertainment Group Inc. (OTCMKTS:OTTV) continues to trade in a range for the better part of the year. After failing to close above the $0.01 a share on two attempts, the stock continues to languish near all-time lows and in dire need of new catalysts if it is to bounce back.

Viva Entertainment Growth Prospects

The underperformance comes after the Chief Executive Officer reiterated that the company continues to enjoy accelerated growth.

“Viva Entertainment Group is pleased to report a significant revenue growth of 75% over the last three months and to assure shareholders that company has no intention of changing its share structure. Viva is executing my business plan and our recent progress validates all the steps we took for the past few years,” said Mr. Falcones.

Viva Entertainment Group Inc. (OTCMKTS:OTTV) is in the process of finishing the integration of a movie library that will come with 8,000 titles. Leveraging brand ambassadors with big name recognition is also on the agenda as the company tries to enhance the library’s popularity. The Company also plans to finalize the development of Opera System for Smart TVs.

Plans are underway to start nationwide advertising campaign designed to generate subscription sales for the company. Viva Entertainment Group Inc. (OTCMKTS:OTTV) is also eyeing deal with a renowned marketing campaign on a multiyear deal basis.

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. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.