Micro cap implant maker Regentis adds 500% after canceling secondary offering
Regentis' technology regenerates damaged or diseased tissue including inflamed cartilage and bone / Photo: U.P.SD / Shutterstock
Shares of Regentis Biomaterials, an Israeli developer of implants for bone and cartilage regeneration, soared about 527% on the New York Stock Exchange on Monday, reaching an all-time high. The company withdrew a follow-on share offering it had announced on May 1.
Details
Regentis stock surged around 527% on Monday to $9.40 per share, a record high. During the session, the stock was up more than 850% at its peak, Stocktwits, a financial social media platform, noted. Markets were reacting to Regentis' withdrawal of a registration statement for an additional share offering that it had filed with the U.S. Securities and Exchange Commission.
On May 1, the company announced plans to sell 3.3 million shares at $3 per share, raising a total of $10 million before expenses. It planned to use the proceeds to further develop its technology. In the documents filed with regulators on Monday, Regentis stated that it no longer intends to proceed with the secondary offering. As a result, existing shareholders will not be diluted.
About the business
Regentis develops tissue-repair therapies. Its lead product, GelrinC, is a biodegradable hydrogel implant. It is injected with a syringe into, for example, the knee joint. It then degrades and is resorbed, allowing surrounding cells to regenerate the cartilage.
The company's addressable market in the U.S. alone is estimated at $3 billion, while no approved off-the-shelf treatment is currently available, according to the company.
GelrinC is currently in clinical trials in the U.S. and has been approved for use in Europe. The company plans to begin training surgeons to use the product in the third quarter. According to the company, this is part of its commercialization preparations. On June 9, the next day after this announcement, Regentis shares rallied 88%.
Stock performance
Regentis completed an IPO on the NYSE in December, offering investors 1.25 million shares at $8 per share. Since then, taking into account Monday's rally, the stock has gained 27%.
Only one Wall Street analyst covers the company, who rates the stock a "buy" at a target price of $10 per share. That implies upside of just over 6% from the last closing price.
