Investors Renew Interest On US Stem Cell Inc. (OTCMKTS:USRM)
US Stem Cell Inc. (OTCMKTS:USRM) stock continues to experience increased volatility in the market as the stock rallied by more than 20% in Thursday’s trading session. Renewed investor interest comes on the heels of the company reporting positive first quarter results after General American Capital bet big on the company’s growth prospects with a $5 million investment.
Stellar Q1 Results
The leader in regenerative medicine and cellular therapy generated revenues of $1.15 million for the first three months of the year. First quarter revenues represented a 62% increase from $710,000 reported for the same quarter last year. Gross profit in the quarter was also up by 45.6%, soaring to $810,000 from the $556,000 reported for the same period last year.
US Stem Cell Inc. (OTCMKTS:USRM) ended the first quarter cash positive, having seen its cash balance soar to $268,000 from $62,000 as of Q1 2016. Buoyed by the first quarter results, the company’s chief executive officer, Mike Tomas, has reiterated commitment to pursuing strategic business initiatives geared towards growing top line revenues.
General American Partners Big Bet
Impressed by the growth prospects of US Stem Cell Inc. (OTCMKTS:USRM), General American Partners reiterated its commitment to invest up to $5 million in exchange for 63, 873,275 shares of USRM. The private equity firm remains confident of the company’s long-term prospects driven by the growing demand for regenerative medicine procedures.
“We see exponential growth in the stem cell industry, estimated to grow to $170 billion by 2020. We are very pleased to join forces with U.S. Stem Cell, Inc., a leader in regenerative medicine solutions, to help expand our role in this important market,” said Joseph DaGrosa, Jr., a Principal of General American Partners.
The developer of stem cell therapies has applied for a Regenerative Advanced Therapy designation from the FDA for its MyoCell product. The regenerative product has already demonstrated clinical efficacy in clinical trials, a milestone that US Stem Cell remains confident will be key to it gaining RAT designation as a novel treatment for life-threatening diseases.
US Stem Cell Inc. (OTCMKTS:USRM) stock was a big mover in Thursday’s trading session having rallied by 26.67% in the day to close at $0.104 a share. The stock is currently trading in the $0.08-$0.10 trading range and close to its 52-week high of $0.18 a share.
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: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.