Apricus Biosciences Inc (NASDAQ:APRI) completed a direct offering valued at $11 million. The agreement is with Sarissa Capital management and another accredited investor. The sale is for 6 million of the company’s shares and warrants along with another 3 million of the company’s public float. The warrants are combined with the stock and allow the buyers to purchase a matching share for 50 cents. The warrants are executable in six months from the date of the purchase. They expire after 7 years. The price is based on the shares closing price on 2/10/14. The funds will be used to maintain corporate activities and also working capital.
Apricus Biosciences Inc (NASDAQ:APRI) also announced recently that it has received a new patent. It is titled “METHODS AND COMPOSITINS FOR TREATING RAYNAUD’S DISIEASE.” This patent is focused on the methods for treating Raynaud’s disease and its other affliction, sclerosis. The patent is expected to expire in 2032. The company’s product RayVa and focuses on the disease Raynaud. The disease is more common in woman and there is no currently approved treatment for it in the US. The product is close to getting the FDA’s approval and the agency is planning to qualify it by early 2017.
There is a major opportunity in that field as there is no competition since no treatments have been deemed acceptable by the FDA as of yet. This creates an open field and should the company be able to advance its status there is no competition to share market space with. It hopes that by 2017 these objectives have been accomplished and that the drug begins marketing and branding efforts.
Apricus Biosciences Inc (NASDAQ:APRI) focuses on its proprietary product, RayVa and is in the process of seeking more patents associated with its treatment of Raynauds.
The stock has been very active recently and is trading at its highs. The recent move was short lived though and it now sits at support. The issue is slightly over bought which indicates it needs to consolidate.
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