Molecular Data Inc. (MKD), a company operating in the chemical e-commerce business in China, has gained a monumental increase of 7.35% in the pre-market trading session. As a result, MKD stock was trading at $0.43 when last checked. On Wednesday, MKD closed the day at $0.40 after increasing 7.41% during regular trading hours. The increase is presumably because of the recent bullishness in bitcoin, which ultimately has become a catalyst for companies related to blockchain technology, like MKD. Let’s discuss some recent developments related to MKD.
MKD closed registered direct offering
On 22nd September, MKD announced the closure of its previously announced registered direct offering for the purchase and sale of common units comprising ADS and pre-funded units. The purchase price for the common units was placed at $0.38 per unit. The purchase price for the pre-funded unit was $0.0001. The exercise price for ADS warrants was $0.38. The company expected to generate gross proceeds of $15 million from the offering. It intended to use the proceeds for general corporate purposes and for working capital. Aegis Capital Corp. served as the lead placement agent for the offering.
1HFY 2021 financial highlights
On 30th September, MKD reported the financial results for the first half of the fiscal year 2021, which ended on 30th June 2021. The net revenues in the first half of the year were $226.3 million, which is a decrease of 67% when compared with the same period of 2020. The decrease was primarily due to the effects of the COVID-19 pandemic on the business of the company. The gross profit generated by the company during the period was $1.87 million. The total operating expenses for the six-month period were $7.24 million while the operating loss was $5.36 million. The net loss for the six-month period was $5.03 million. The company had cash and cash equivalents of $2.1 million on 30th June. The total assets in possession of the company were $118.17 million on 30th June, while total liabilities were $127.29 million. The
Future of MKD stock
Looking at the recent performance of MKD, the stock has declined over 50% during the last three months. The reason for the decline seems to be the harsh regulatory policies by Chinese regulators, which have repeatedly proved noxious for MKD. So, potential investors should be careful about this narrative while investing in MKD stock.