SenesTech Inc. (NASDAQ:SNES)

SenesTech Inc. (NASDAQ:SNES) Drops After Pricing Public Offering

SenesTech Inc. (NASDAQ:SNES)

SenesTech Inc. (NASDAQ:SNES) felt the wrath of Wall Street after pricing an initial public offering of its common shares at a discount. Shares of the company fell 36.7% in Friday’s trading session to end the week at $0.86 a share.

SenesTech Inc. (NASDAQ:SNES)

SNES Public Offering

The sell-off follows the pricing of 5.4 million shares of common stock at $1 a share. The developer of proprietary technologies for managing animal pest populations has also granted underwriters warrants for the purchase of an additional 4 million shares. The warrants are priced at $1.50 a share.

SenesTech Inc. (NASDAQ:SNES) expects gross proceeds of $5.4 million from the offering before deduction of underwriting discounts, commissions, and other estimated offerings. The offering should close on or about November 21, 2017.

“SenesTech intends to use the net proceeds from the offering for working capital and general corporate purposes, including those related to the commercialization of ContraPest,” SenesTech In a statement.

The pricing of the offering at a discount appears to have spooked investors seen by the stock plunging to a new 52-week low of $0.86 a share. SenesTech is currently trading in a downtrend after underperforming the overall industry. The stock is down by more than 80% for the year as it continues to record lower lows.

SenesTech Widening Net Loss

The pricing of the public offering comes just days after SenesTech Inc. (NASDAQ:SNES) reported disappointing financial results for the third quarter. A wider than expected net loss of (-$2.9) million or (-$0.28) a share compared to a net loss of (-$2.7) million reported last year did not go well with investors.

Operating expenses in the quarter increased to $3 million from $2.8 million attributed to the expansion of product commercialization activities. SenesTech generated revenues of $17,000 in the quarter. The company has signed long-term sales commitments that have the potential to generate over $200,000 and an additional $250,000 of proposals outstanding.

SenesTech Inc. (NASDAQ:SNES) also has an ongoing pilot program with total sales opportunities of $2.4 million on full deployment. The company has also signed two national distribution agreement with Univar and Target specialty products

“These agreements will accelerate our introduction to the professional pest control market. We will be working to fill their initial stocking orders, and providing training and materials to their sales forces. Additionally, we have seen the sales funnel filling up in a variety of segments and markets, although the purchase decision cycle is slower than we expected,” said CEO, Loretta Mayer.

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 $SNES 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.

SenesTech Inc. (NASDAQ:SNES)

SenesTech Inc. (NASDAQ:SNES) Signs Contrapest Distributions Agreements

SenesTech Inc. (NASDAQ:SNES)

Shares of SenesTech Inc. (NASDAQ:SNES) gained 12.1% after the developer of proprietary technologies for managing rodent populations, announced a distribution agreement with Univar, for ContraPest. In addition to the national distribution agreement, Univar has agreed to sell the product in its network.

SenesTech Inc. (NASDAQ:SNES)

ContraPest Distribution Agreements

Univar is an excellent distribution partner for SenesTech given that it’s extensive breadth and depth coverage in the retail market. The company boasts of direct connection with pest control operators across the U.S., perfect for nationwide coverage.

In addition, SenesTech Inc. (NASDAQ:SNES) has signed a similar distribution agreement with Target Specialty Products for ContraPest. The distributor will also market the patent-protected technology throughout its network.

“Target Specialty Products is an excellent sales and distribution partner for SenesTech, with their direct connection with the pest control operators, with their extensive breadth and depth of coverage throughout the U.S. They will provide us with a more extensive nationwide sales coverage in the pest management sector,” said Dr. Loretta P. Mayer, Chair, and CEO.

SNES Stock Rating

The two distribution agreements appear to have strengthened investors’ confidence in the stock. However, the stock continues to trade in a downtrend after losing more than two-thirds of its market value since the start of the year.

Despite the underperformance, Roth Capital analyst Gerry Sweeney remains optimistic about the company’s long-term prospects. The analyst has initiated coverage of the stock with a ‘Buy’ rating. The analyst also has a price target of $14 a share which implies an upside potential of 413%.

Separately, SenesTech Inc. (NASDAQ:SNES) has announced plans to offer common stock and warrants for the purchase of common stock in a registered public offering. The company intends to use net proceeds from the offering for working capital and general corporate purposes. Part of the funds is to be used for the commercialization of ContraPest.

Q3 Financial results

SenesTech Inc. (NASDAQ:SNES) generated revenue of $17,000 in the third quarter. The company has also signed long-term sales commitments that have the potential to generate over $200,000 with an additional $250,000 of proposals. SenesTech also has pilot programs with total annual sales opportunities of approximately $2.4 million.

Net loss in the third quarter totaled (-$2.9) million or (-$0.28) a share, compared to a net loss of (-$2.7) million or (-$0.37) a share reported last year. SenesTech Inc. (NASDAQ:SNES) exited the quarter with $3.6 million in cash and cash equivalent.

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 $SNES and receive breaking news on other hot stocks by signing up for our free newsletter!

SenesTech Inc (NASDAQ:SNES) Gets Boost from Distribution Agreement

SenesTech Inc (NASDAQ:SNES)

SenesTech Inc (NASDAQ:SNES) stock is up over 75% in the first 1.5 hours of trading after the company announced a national distribution agreement with Univar. The thinly traded pest-control company typically trades less than 100,000 shares per day but one hour into today’s session over 420,000 shares have exchanged hands.

Shares of SenesTech Inc (NASDAQ:SNES)

Dr. Loretta P. Mayer, Chair, CEO and co-founder of SenesTech stated in a press release “Univar is an excellent sales and distribution partner for SenesTech, with their extensive breadth and depth of coverage, their direct connection with the pest control operators, and their commitment to sustainability. They will immediately provide us with nationwide sales coverage and nine dedicated sales representatives. As they have assured us, as our distributor, Univar sees their role as an active partner in creating and building a market for ContraPest.”

ContraPest is a liquid fertility control bait for rodents that targets the reproductive capacity of both male and female rats, rendering them infertile.

SNES Stock Review

Shares of SenesTech Inc (NASDAQ:SNES) recently touched $1.58 which established a new 52-week low. The 52-week high, $10.69, was established in early 2017. SNES shares are down over 80% year-to-date despite having sales that have increased from $200,000 in 2014 to $300,000 in 2016. Per share losses shrunk from (-$1.80) in 2015 to (-$1.08) for 2016. Additionally, the company has managed to keep the number of outstanding shares at the same level (10.13 million) for the last three years, thereby avoiding shareholder dilution that sometimes accompanies companies in rapid growth.

Analysts have given SNES shares a 1-year consensus price target of $14 according to the NASDAQ.

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 $SNES 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.