Moleculin Biotech (NASDAQ: MBRX) Stock Goes Through a Rollercoaster

Moleculin Biotech (NASDAQ:MBRX), which is involved in the manufacturing of a range of cancer drugs meant for particularly damaging tumours, went through a bit of a rollercoaster at the beginning of the week. The company has produced a variety of drugs which are meant for the clinical stages of conditions like brain tumours, pancreatic cancer and others. On Monday, the stock reached new heights after the company announced a major breakthrough for the treatment of lung cancer, but on the very next day, it nosedived following a direct equity offering.

The Rise

On Monday, the Houston, Texas based pharmaceutical company released a press release in which it announced that it had made a significant discovery as regards to a drug related to treatment of lung cancer. Needless to say, such an announcement created a flutter in the markets and investors soon piled in as the stock soared by as much as 180% in Monday’s intraday session to reach three-year high of $3.15. By the end of the session, the stock finally closed at 2.98, up 169%. For any pharmaceutical company which is engaged in this particular line of drugs, the announcement was of huge significance and the broader market thought so as well, as the stock went on an almighty rally.

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The Fall

However, the rally did not last long as the next day Moleculin Biotech announced a direct equity offering to institutional investors in order to raise money for research and development, clinical trials, corporate necessities and other sundry expenses. The company offered 9,375,000 units of its common stock at $1.60 to the institutional investors and raised a total of $15 million through this manoeuvre.

The offering is an attractive one for institutions. In addition to the stock, the institution will also get one half of a warrant that would allow it to buy a share for $1.75. The warrant is valid for 5 years and the offering is going to close on the 25th of April. Such an offering did not seem to amuse the market much and the stock tanked 51% after having gone up by about 170% the previous day.

Shares of MBRX are down another 18% to $1.42 in Thursday’s session.

Appliance Recycling Centers of America (ARCI) Stock Hits Multi-Year High On Big News

Appliance Recycling Centers of America - ARCA

When a listed company makes a major breakthrough that could take it into a new level altogether, then there is every chance of a major rally in the shares of the company in question. That is exactly what happened with Appliance Recycling Centers of America, Inc. (ARCI), when one of its subsidiaries announced such a breakthrough news and the company’s stock reached a new 4-year high today.

Stock Jumps Big

IoT or Internet of Things connectivity is a form of technology that allows physical objects to be connected to an internet network and in a path breaking development, Appliance Recycling Centers of America, Inc. (ARCI) ‘s subsidiary GeoTraq announced that it now had that capability. It is regarded as a thing for the future and following the announcement, the stock rallied as much as 80% at it reached $8.50 in Thursday’s session. The stock made a multi-year high of $9.56 earlier in the session today and needless to say, it is quite evident that this particular development has piqued investors immensely.

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The possibilities opened up by such a capability are believed to be immense and if the world does in fact get connected through IoT, then ARCI will be in a pole position to take advantage. Considering the fact that it now access to this connectivity, it will now be possible for ARCI to track devices far more easily. It will also be possible to communicate with the connected devices.

The Technology

The technology is supposed to give ARCI a definite in the market in which it operates. With IoT connectivity, the company will be able to monitor devices with far more easily and also reduce the cycle time considerably, which should lead to savings for ARCI. According to experts, the coverage of IoT through mobile devices is going to be at 93% by the middle of 2019.

The subsidiary GeoTraq is still in the process of testing new modules and it is believed that at some point in the summer of 2019, the company is going to apply for certification from the regulatory authorities. GeoTraq will also participate at a global IoT event in the second week on May and the tech will get far more exposure.

Wildflower Brands’ Stock Gains Momentum On Positive News

Wildflower Brands

Shares of Wildflower Brands Inc. (SUN:CNX) (WLDFF:OTC) are on fire so far this year with a gain of over 40% during the same period on the Canadian Exchange. In fact, the stock has soared over 30% since March 11, 2019 .

Wildflower Brands, which is involved in creating, distribution and designing a range of cannabis branded products, entered into a private placement deal earlier this month that could raise up to $15 million for the company. However, that is not all. The company, which also distributes its products to retailers in the cannabis space across the United States, has also embarked upon an ambitious expansion into the European Union. Needless to say, these are great tidings for the cannabis company that went public only five years ago in 2014.

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Expansion into the European Union

On April 16th, Wildflower signed an agreement that will take the brand into the European Union and needless to say, it is a market that remains on the radar of most cannabis companies. The company signed an agreement with another firm known as Two Towers to take its signature brand named Wildflower Wellness CBD+ into Poland.

The partnership between the two companies is highly strategic. Two Towers, which is one of the best known prescription medical distribution company in Poland is a subsidiary of Omega Rex, which runs a number of pharmacies in the capital city of Warsaw. According to market research firms, the CBD market in Europe is expected to explode in the next few years and it is believed that it could grow by a staggering 400% by the year 2023. In such a situation, many firms in the European Union are looking for partnerships with established brand which operate in the CBD space.

The Private Placement

A private placement is often used by a company when it wants to sell some of its stock to private investors but not through the public markets and over the years, it has become a very popular method of raising capital. Wildflower went for a private placement as well instead of going to the capital markets and has issued a total of 20,000,000 subscription receipts at 75 cents apiece.

The whole process is supposed to close on 23rd of May this year and the company expects to raise up to $15 million through this placement. The money raised will directly go into fortifying the company’s supply chain, distribution infrastructure and for boosting manufacturing capabilities.

What do you think of Wildflower’s Stock?

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