Here’s Why Microbot Medical (MBOT) Stock Jumped 22% Today
It’s a very rewarding trading day for investors in Microbot Medical (MBOT) with shares up over 20%, making the stock Wall Street’s bull of the day. Why the excitement? The medical-device maker announced this morning that it has entered into definitive agreements with several institutional investors for the purchase of 590,000 shares of its common stock, at a purchase price per share of $10.00, a 10% premium to yesterday’s closing price. This is clearly a strong step forwards for Microbot, and a positive sign for investors.
The gross proceeds to Microbot, before deducting placement agent fees and other offering expenses, are expected to be approximately $5.9 million. Microbot currently intends to use the net proceeds from this offering for the continuous development of its Self-Cleaning Shut (SCS) device for the treatment of hydrocephalus and NPH; to expand and develop additional applications deriving from its existing IP portfolio, including the potential addition of complementary assets to the CardioSert portfolio either through internal development, in-license or acquisition; and for working capital and other general corporate purposes.
The closing of the offering is expected to occur on or about January 17, 2019, subject to the satisfaction of customary closing conditions.
The company has recently announced it had begun the follow-up pivotal study that was designed to evaluate the safety and efficacy of the SCS. The study is now being conducted at Washington University and at Wayne State University. Recall, the Self-Cleaning Shut will be utilized in patients with hydrocephalus. The study will evaluate a larger sample size (approximately 15 animals) as compared to the initial study and will have primary and secondary endpoints related to safety and efficacy of the Self-Cleaning Shunt. The company currently anticipates completion of the follow-up study in mid-2019 and potential submission to the FDA during 2H-2019.
Ladenburg analyst Jeffrey Cohen has recently downgraded MBOT stock from Buy to Hold, without suggesting a price target. (To watch Cohen’s track record, click here)