Sunshine Heart Inc (NASDAQ:CHFS) Stocks Skyrockets on SEC Filing

Sunshine Heart Inc (NASDAQ:CHFS)

Short-sellers of Sunshine Heart Inc (NASDAQ:CHFS) felt the pain today as the stock rocketed up over 500% in early afternoon trading, but have hit strong resistance at the $25 mark. While there has been no news released concerning the company, reports suggesting a catalyst for the upward move reference an SEC filing for a public offering of preferred stock and warrants.

Sunshine Heart Inc (NASDAQ:CHFS)

The filing details a potential offering of preferred shares and warrants totaling $32 million. The unit offering involves $10 million of preferred shares and $22 million of common shares that would be exercisable by the warrant holder(s). The 10,000 preferred shares would be exercisable into 2.141 million common shares of CHFS. The 22 million warrants could be converted into 4.282 million common shares of CHFS. The pricing of the public offering was not disclosed in the filing. In April, 2017, CHFS stock plunged 30% on the news of a dilutive offering of common shares.

About Sunshine Heart

A cardiac surgeon founded Eden Prarie, MN-based Sunshine Heart, Inc (NASDAQ:CHFS). Sunshine Heart is a medical device company that creates, develops, and commercializes technologies that address heart failure. The EU regulatory authorities have granted a CE Mark to their C-Pulse Heart Assist System. In the USA, the system is undergoing clinical studies to determine its safety and efficacy for the treatment of moderate to severe heart failure.

Sunshine Heart, Inc (NASDAQ:CHFS) lead product is the Aquadex FlexFlow® ultrafiltration system. The Aquadex FlexFlow system removes excess fluid from patients suffering from fluid overload who have failed diuretic therapy. Heart failure is the leading cause of fluid overload. The American Heart Association estimates that 6.5 million people in the United States, age 20 and over, had heart failure. There are an estimated 960,000 new heart failure cases annually. Annual hospitalizations for heart failure exceed 1 million in United States and Europe, and more than 90% are due to symptoms and signs of fluid overload.

CHFS Stock Developments

On October 10, 2017, Sunshine Heart, Inc (NASDAQ:CHFS) stockholders approved, later approved by the Board of Directors, a reverse 1:20 stock split. That move was in response to a notification from The NASDAQ Stock Market LLC informing Sunshine Heart that they were no longer in compliance with the minimum bid price requirement, as the bid price of shares of CHFS common stock closed below the minimum $1.00 per share threshold for 30 consecutive business days. Nasdaq also notified the company that they had 180 calendar days, or until November 28, 2017, to regain compliance.

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 $CHFS 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.

Sunshine Heart Inc (NASDAQ:CHFS)

Sunshine Heart Inc (NASDAQ:CHFS) To Start Manufacturing In-House

Sunshine Heart Inc (NASDAQ:CHFS)

Sunshine Heart Inc (NASDAQ:CHFS) traded higher in Thursday’s trading session after announcing plans to relocate the manufacturing of Aquadex Flex Flow system to its own facility. The stock was up by 13.26% share on the news to end the day at $0.76 a share.

Sunshine Heart Inc (NASDAQ:CHFS) is an early stage medical device company specializing in cardiac and coronary disease products. The company is currently commercializing the Aquadex FlexFlow System indicated for the treatment fluid overload in patients who have failed diuretic therapy.

Thursday’s rally did little to alter direction of trade as the stock continues to trade in a strong downtrend. The stock remains suppressed in a tight $0.68 to $0.82 trading range. CHF Solutions has underperformed the overall industry having dropped from highs of $26 a share as of December 2016.

Sunshine Heart Inc (NASDAQ:CHFS)
One month daily candlebar chart for CHFS

Aquadex Flex Flow In House Manufacturing

It awaits to be seen if changes in the manufacturing of the company’s lead product will help push the stock higher from the current levels. The company is transitioning manufacturing from Baxter International to its facility in Eden Prairie in Minnesota.

Sunshine Heart Inc (NASDAQ:CHFS) acquired the manufacturing assets with the acquisition of Aquadex mid last year. However, Baxter was allowed to continue manufacturing the company’s products as part of a commercial Manufacturing and Supply Agreement. Under the terms of the agreement, the company is to continue purchasing raw materials and finished goods from Baxter until February next year.

The set-up of the manufacturing assets at the new site is almost complete setting the stage for production of Aquadex FlexFlow system to begin in the fourth quarter.

“Bringing the manufacturing of the Aquadex FlexFlow system products in-house will give us greater control and flexibility in managing our operations. Over time, we expect that this will result in improved gross margins as volumes and capacity utilization increases,” said CEO John Erb.

Asia and Europe Marketing Push

In a bid to target customers in Asia and Europe, Sunshine Heart Inc (NASDAQ:CHFS) has engaged the services of Laurent Duhoux as an Independent Business Development consultant. He joins the company with over 25 years’ worth of marketing experience in medical device expertise. Laurent has previously worked at Edward Life Sciences where he successfully launched a number of products in addition to pursuing sales opportunities in Europe.

Separately, Sunshine Heart Inc (NASDAQ:CHFS) will announce its second quarter results when the market opens on August 8, 2017.

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 $CHFS 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.

Sunshine Heart Inc (NASDAQ:CHFS)

Sunshine Heart Inc (NASDAQ:CHFS) Trades Higher On FDA Trial Approval

Sunshine Heart Inc (NASDAQ:CHFS)

Sunshine Heart Inc (NASDAQ:CHFS) was up by 13.59% in Friday’s trading session days after announcing that researchers at Stanford University School of Medicine have received FDA approval to evaluate safety and effectiveness of its Aquadex FlexFlow Aquapheresis system. The study seeks to ascertain whether the Aquapheresis therapy is associated with greater weight loss and non-inferior rate of renal dysfunction compared to normal medical therapy.

Stanford Aquadex FlexFlow Aquapheresis System Study

The system is indicated for temporary ultrafiltration treatment for patients with fluid overload who have failed diuretic therapy. The device is designed to improve the quality of life for patients with heart failure as well as other related conditions.

The upcoming non-blinded clinical study will be carried out in 45 children of up to 21 years with diuretic-resistant fluid overload and heart failure.

“We are pleased that the researchers have received FDA approval to proceed with this IDE study,” said John Erb, Chairman and CEO of CHF Solutions. Given the limitations of patient unresponsiveness to diuretic therapies over time, our solution represents a potentially transformative future standard of care,” said CEO John Erb.

Equity Award

Separately, Directors of CHF Solutions has approved two equity awards under the company’s New Hire Equity Incentive Plan. In connection to the approval Jim Breidenstein and Gordon Weber are to receive 339,145 and 226,097 shares of the company’s stock respectively. The option awards come with an exercise price of $0.57 a share with a ten-year term and vest over a period of four years.

Audit Firm Changes

CHF Solutions (NASDAQ:CHFS) has confirmed the dismissal of Ernst & Young as the company’s independent registered public accounting firm. However, the company maintains that financial statements prepared by the firm for the year ending December 31, 2016 and December 31, 2015 does not contain any adverse opinion, or disclaimer of opinion. The company also maintains there were no disagreements with the firm on any matter of accounting prior to its dismissal.

Baker Tilly Virchow Krause, LLP takes over as the company’s new independent accounting firm with immediate effect. For the first three months of the year, CHF solutions reported revenues of $901,000 compared to $746 000 for the quarter ended Dec 31, 2016. Net income in the quarter was $940,000.

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