Raptor’s stock jumped 15.20% up on Friday and closed the trading session at $2.88 for a share. Nearly 800,000 shares of the stock were traded, a value almost four time the average and expressing the positive attitude of investors, who may finally expect a break through after the four months of sideways moves. Though, as the previous resistances remained untouched, it is probably too early to get too excited.
According to the filing on Friday, the company has entered into a securities purchase agreement with certain US and Canadian investors for the private placement of RPTP units, each unit consisting of one share and one warrant to purchase one share of common stock. The offering was closed on Thursday, whereby around 4.9 million units were issued for gross proceeds of $15 million, or the price for one unit was $3.075. It seems that the dilution will happen soon, as the company took also the obligation to file a registration statement for the securities already issued or still up to be issued upon the exercise of the warrants.
Raptor’s stock reached its current levels with several sharp jumps up in the beginning of May, as one of the latest important corporate updates was announced, namely the positive clinical results in one of the company’s Phase 2a product candidates for the treatment of liver disease.
It seems that investors see a possible improvement in the liquidity as a positive consequence from the recent sales of common stock, along with the negative one from the expected dilution.
In April this year, the company signed a securities purchase agreement with an investment fund, according to which the investor agreed to purchase up to $15 million of the RPTP common stock over a 25 month period. Pursuant to that agreement, in the beginning of May a registration statement was filed, related to the sale of 4.5 million shares by that institutional investor.
Raptor Pharmaceutical is currently working on three clinical development programs and has another three for which the company is searching a development partner. At the end of June, a partner for one of that programs, ConviviaTM, has been found.
