Progenity, Inc. (PROG), a biotechnology company, has increased by 6.43% and is trading at $1.49 in premarket at the time of this writing. On Monday, PROG stock faltered 21.79% during regular hours after the company announced a $20 million registered direct offering of common stock. The stock closed the day at $1.40.
The offering of PROG common stock
PROG announced on Monday that it entered into a definitive agreement with several institutional investors. The agreement was regarding the purchase and sale of 13,333,334 shares of the Company’s common stock, under the registered direct offering priced at the market under Nasdaq rules. The purchase price for shares was set at $1.50 per share. The closing of the offering was expected to take place on 6th October 2021. H.C. Wainwright & Co. was serving as the exclusive placement agent for the offering. The company said that the expected gross proceeds from the offering are $20 million. Progenity intended to use the gross proceeds to support its operations, to invest in research and development related tasks, and for working capital as well as general corporate purposes.
Q2 2021 financial highlights
In early August, PROG reported the unaudited quarterly results for the second quarter of the fiscal year 2021, which ended 30th June 2021. According to the details, the company generated revenue of $0.46 million for the quarter, while for an equivalent period of 2020, it was $0.16 million. The total operating expenses for the period stood at $36.11 million, while for an equivalent period of 2020, the total operating expenses hovered around $31.63 million. The company suffered a loss of $35.65 million from operations during the quarter. During the equivalent period of 2020, the loss from operations stood at $31.46 million. The company bore a net loss of $78.53 million for the quarter, while for an equivalent period of 2020; it stood at $32.26 million. The net loss per basic and diluted share for the period remained at $1.23, while for the second quarter of 2020, it remained at $0.56. The company had cash and cash equivalents of $65.99 million on 30th June. The total assets in possession of the company stood at $119.94 million, while total liabilities remained around $259.55 million.
What’s next for PROG?
During the last week, the PROG stock has risen by 55%, mainly on the back of patent achievement USPTO. The rise has outweighed the recent sharp decline that occurred on Monday. Analysts are hopeful that PROG stock is in a strong position to capitalize on that performance and reap the benefits in the coming quarters.
