We may have found our next “diamond in the rough,” a small biotech company out of New Jersey on the Fast Track for prophylactic treatment, literally. Earlier this month not only had the company’s lead drug candidate, MAT2203, been granted a Qualified Infectious Disease Product (QIDP) designation but it this also came with Fast Track status as well, by the US Food and Drug Administration.
MAT2203 is for prophylactic treatment of invasive fungal infections due to immunosuppressive therapy. MTNB has also previously reported, the U.S. FDA has designated MAT2203 as a QIDP with Fast Track status for the treatment of invasive candidiasis and aspergillus.
Just like many Biotechnology companies, MTNB also requires capital to keep up with R&D expenses. To this end, the company’s recently announced $8M private placement has caught serious attention not only for the total amount but also for the price per share that the money is being raised at. The Company sold to accredited investors an aggregate of 1,600,000 Series A Preferred Shares at a purchase price of $5.00 per share.
Obviously accredited & institutional investors are clearly seeing the value that MTNB has brought to the table. An $8million raise is nothing to bat an eye at especially considering that MTNB isn’t a listed biotech stock right now. They still hold an OTCQB. In fact if you look at the trading activity since last week’s announcement, you’ll quickly see that the street is catching onto this fact in a big way.
How about a move of almost “$1-Big”? Shares of MTNB were trading at $0.95 prior to this announcement and even before then, the chart’s uptrend suggested that the new Fast Track and QIDP designations had begun attracting the retail market.
And analysts are taking notes…
SeeThru Equity, S&P Capital IQ, and Zack’s Investment Research have all picked up analyst coverage on Matinas. Remember, this is still an OTC Listed company but has 3 well-known analysts covering it right now. What non-listed companies do you know of that have one, let alone 3 analysts covering their companies?
The Real Breakout Yet To Come?
We’ve been following this for the last week and it looks like this recent funding round done at more than a 100% premium to the current price has started to raise eyebrows. Besides the facts that we know of (capital raise and fast track/QIDP designation), what else could be going on right now causing this momentum? That is the question we’re specifically looking to answer and along the way we will be intently following the progress. Consider this your early heads up to a company that we’ve got our eye on right now and for at least the foreseeable near term future.
Disclaimer: Please note that we have not been compensated for this article nor do we own any shares of Matinas BioPharma (MTNB) as of 9/22/2016