Repros Therapeutics (RPRX):
Market Cap as of March 2, 2011: 68.55mm Last 12 months sales: 0 Accumulated Deficit Since Inception: 178mm
ECTE and NEOP are not the only companies popular with the retail bio-dreck crowd. Another name in fashion among those with poor memories and even poorer search skills is Repros Therapeutics formerly known as Zonagen (RPRX fka ZONA).
And, like those other names RPRX recently did quite an amazing financing.
On February 3, 2011 RPRX, through their longtime low tier banker Ladenburg Thalman, did a HIGHLY unusual unit offering. For each unit that cost an investor $17.15, the investor got the following:
4 shares of common stock
1 Series A warrant to buy 3 shares of common at 1c per share
1 Series B warrant to buy 2.45 shares of common at 2.49 per share
Yes, you read correctly, the Series A warrants are struck at 1 penny. That is a 99.6% discount to the market price of the stock, $2.58, that day.
The minimum value of each unit on February 3rd was:
4 x 2.58 = 10.32 Common Stock Value
3 x (2.58-.01) = 7.71 Series A Warrant Value
2.45 x (2.58-2.49) = 0.22 Series B Warrant Value
Total minimum value of $18.25 on a $17.15 investment immediately.
As of the close of trading on March 2, 2011 that same package is worth at a minimum:
4 x 6.05 = 24.20 Common Stock Value
3 x (6.05 – .01) = 18.12 Series A Warrant Value
2.45 x (6.05 – 2.49) = 8.72 Series B Warrant Value
Giving a total value of $51.04 on a $17.15 investment with just a one month holding period. What a deal! Reminds your author of that recent ECTE financing.
So just what is RPRX up to? And who are the lucky buyers of those units? Stay tuned to learn more. Much more.