For the second time in as many weeks, shares of Innovus Pharmaceuticals, Inc. (OTMKTS:INNV) have taken a serious gut-punch. This week’s cliff-dive appears to be related to a frosty reception for the company’s announcement of a public offering the details of which you can find a bit further down the page.
While another immediate backslide is disheartening, we can’t help but wonder at what point INNV stock becomes undervalued, and whether the hits it has taken on the heels of a hot start to the month of March will be enough to qualify it for that designation.
Innovus Pharmaceuticals, Inc. (OTMKTS:INNV) soared at the beginning of the month after it was revealed that the company’s treatment for Female Sexual Dysfunction (FSD), which allows women to increase their sexual desire, had received the green light to be commercialized in all member-states of the European Union. That major spike to nearly .40/share, however, was followed by a significant consolidation which has persisted.
About Innovus Pharmaceuticals:
Innovus Pharma is an emerging leader in OTC and consumer products for men’s and women’s health and vitality. The Company generates revenues from its lead products Zestra for female arousal and EjectDelay for premature ejaculation and has a total of five marketed products in this space, including Sensum+ for the indication of reduced penile sensitivity, (for sales outside the U.S. only), Zestra Glide, Vesele for promoting sexual and cognitive health, Androferti (in the US and Canada) to support overall male reproductive health and sperm quality and FlutiCare OTC for Allergic Rhinitis. Innovus Pharma’s mission is to in-license, acquire or develop over-the-counter and consumer healthcare products designed for in-home treatment of medical conditions and ailments to help people take care of themselves and their families in order to live healthy lives.
Innovus Announces $3.85M Public Offering
As stated above, the continued hardship for INNV stock seems to have been exacerbated by the revelation of the pricing of a public offering of 25,666,669 shares of common stock, one-year warrants to purchase up to 25,666,669 shares of common stock and five-year warrants to purchase up to 25,666,669 shares of common stock, with expected total gross proceeds of approximately $3.85 million.
The offering was priced at $0.15 per share of common stock, with each share of common stock sold with one one-year warrant to purchase a share of common stock, at an exercise price of $0.15 per share, and one five-year warrant to purchase common stock, at an exercise price of $0.15 per share. The offering is expected to close on or about March 21, 2017, subject to satisfaction of customary closing conditions.
The estimated net proceeds to the Company are expected to be approximately $3.3 million, excluding the proceeds, if any, from the exercise of the warrants. Innovus intends to use the net proceeds from this offering primarily for the commercial launch of FlutiCare™, if approved by the FDA, working capital and general corporate purposes, including sales and marketing activities, product development, capital expenditures, the repayment of certain debt of the Company and product acquisitions and product licenses. (Source: Business Wire)
The bad news for INNV is that it could see sustained losses, with a chart that does suggest it may have further to fall. The good news, is that this is ultimately going to lead to the finding of support, after which the subsequent rebound could be a solid opportunity. Especially considering the fact that we’re less than two weeks removed from the company reporting record annual revenues for 2016. We’ll be sure to stay on the case, and pass any further significant updates on INNV along to you! Be sure that you’ve signed up for our 100% free penny stock newsletter, which is as easy as entering your email in the box below and hitting Subscribe Now!