Spherix Inc (NASDAQ:SPEX) Shares Take Off

Spherix Inc (NASDAQ:SPEX)

Spherix Inc. (NASDAQ:SPEX) shares are up over 50% after a letter to SPEX shareholders was released by the company. Shares closed on Monday at $1.12 but gapped up to open at $1.28 before hitting an inter-day high of $1.72. Volumes have been massive. The holder of telecommunications patents normally trades under 100,000 shares per day but by 12:30PM EST, over 9.5 million shares have traded hands.

Spherix Inc (NASDAQ:SPEX)
$SPEX graph June 27 2017

The catalyst for the spike in share price and volume was the release of a letter to shareholders from management that more fully explained the acquisition of a controlling interest in Hoth Therapeutics. Cincinnati, OH-based Hoth Therapeutics is the licensee of proprietary, patented, drug compounds developed at the University of Cincinnati. Its lead drug candidate, BioLexa, is a treatment for eczema.

A primary reason for Spherix Inc (NASDAQ:SPEX) acquisition of Hoth was their anticipation of a dramatically shorter time frame for FDA approval because the BioLexa compound uses a combination of two previously approved drugs. BioLexa can take advantage of the shortened 505(b)(2) FDA testing procedures which can often take one quarter to one third the time of new drug testing.

Spherix Inc (NASDAQ:SPEX), in their letter to shareholders, listed acquisitions by Pfizer, Mylan, and Allergan along with the amounts involved which ranged from $5.2 billion to $85 million. These amounts were used by Spherix Inc (NASDAQ:SPEX) to emphasize the demand for dermatological treatments addressing a large unmet need in a large market to large pharmaceutical firms. Partially based on that analysis of the pharmaceutical market demand for dermatological treatments, Spherix management believes Hoth may provide multiple opportunities for profitable exits.

Spherix Inc (NASDAQ:SPEX) also commented on efforts with Equitable IP to secure the monetization rights to over 100 new patents that are largely unlicensed. These patents came from a global network company focused on managed security, network, voice and data services and are all related to improvements in optic fiber transmission.

Reports place analyst consensus price targets for Spherix at around $19 per share. Last year, Spherix shareholders earned $6.76 per share. However, shareholder dilution has been fierce. In 2014, there were 1.04 million shares of SPEX outstanding and that number grew to 3.7 million by the close of 216.

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. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Spherix Inc (NASDAQ:SPEX) Signs New Client To Online Learning Business

Spherix Inc (NASDAQ:SPEX)

Spherix Inc (NASDAQ:SPEX), an intellectual property development firm dedicated to the fostering of monetization and technology of intellectual property, reported that it has signed up a new customer.

The buzz

Spherix has finalized an IP Consulting Services Deal with Numedeon and VWIP Inc. It is a privately held firm based in California and, since 1999, has been advancing immersive web digital learning technology. Known for creating the kid’s educational site “Whyville”, now with 8 million enrolled users, Numedeon has developed multiple immersive web learning settings for a variety of demographics and uses.

Numedeon was established by Dr. James M. Bower and numerous of his colleagues and students at the California Institute of Technology. The online site, Whyville was introduced in 1999 on the patent protected NICEtm platform as the initial social game-based educational online site.

Spherix reported that Numedeon is associated with over 150 public and private entities to establish technology that engages children in knowing about extensive topics including business, art, geography and science.

Whyville’s average user age is 13 and 78% of its customers are female.  Previously, in January 2015, Numedeon set VWIP as a subsidiary firm specifically to monetize and manage Numedeon’s accumulated IP comprising a foundational patent linking to networked computer systems to involve users in immersive web communities.  VWIP purpose is to build JV addressing the broad range of verticals utilizing the social gaming and learning aspects of the NICEtm Engine.

Dr. Bower, the CEO of Numedeon and VWIP, reported that they have believed since they started with social and game based learning in the 1980’s, that JV ventures grounded in online technology platforms are the future of digital corporate structure. They are thrilled to work with Spherix in assessing how the intellectual property they have patiently created over more than three decades may permit them to further apply their technology to wider range of market prospects.

Anthony Hayes, the CEO of Spherix, reported that the E-Learning, or online, sector has been witnessing explosive growth. Almost $35.6 billion was expended on self-paced e-learning globally in 2011.

In 2014, e-learning industry was worth $56.2 billion market, and that number was $107 billion in 2015. This is an extremely thrilling space and they are delighted to be working with renowned pioneers in this field and the IP on which Numedeon and WWIP’s accomplishment has been based.

In the last trading session, the stock price of Spherix gained more than 5% to close at $1.15. The gains came at a share volume of 1.81 million compared to average share volume of 48,805.

3/09/2017
Ticker Symbol SPEX
Last Price a/o 3:21 PM EST  $1.15
Average Volume  76.99K
Market Cap (mlns)  5.59M
Shares Outstanding (mlns) 4.86M
Share Float (mlns) 4.71M
Inside Ownership
Short Float 5.97%
Short Interest Ratio 3.65
Quarterly Return -2.81%
YTD Return 10.58%
Year Return -46.01%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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.