Zacks Investment Research, Inc. resumes coverage for SORRENTO THERAPEUTICS INC with BUY recommendation.
BY Investars Analyst Actions - private
— 1:20 PM ET 11/10/2017
On November 10, 2017 Zacks Investment Research, Inc. resumed coverage for SORRENTO THERAPEUTICS INC (SRNE) with a BUY recommendation.
Buy Recommendation today!
BRIEF-Sorrento Therapeutics says co entered into an at market issuance sales agreement with B. Riley FBR as sales agent
BY Reuters
— 9:27 AM ET 11/09/2017
Nov 9 (Reuters) - Sorrento Therapeutics Inc (SRNE)
* Sorrento Therapeutics (SRNE) - ?On Nov. 9, 2017, co entered into an at market issuance sales agreement with B. Riley FBR, Inc., as sales agent - SEC Filing?
* Sorrento Therapeutics Inc (SRNE) - ? Pursuant to sales agreement, co may offer and sell through agent up to $100 million in shares of common stock?.
This is an ATM security sale. Meaning SRNE can, at their discretion, sell them for any price they want. They can stop selling on down days and sell more on up days. They can start selling whenever they choose as well as stop selling whenever they choose. ATM registrations are generally used when a company does not really need the cash but still wants to raise more.
An at-the-market (ATM) offering is a type of follow-on offering of stock utilized by publicly traded companies in order to raise capital over time. In an ATM offering, exchange-listed companies incrementally sell newly issued shares into the secondary trading market through a designated broker-dealer at prevailing market prices. The broker-dealer sells the issuing company's shares in the open market and receives cash proceeds from the transaction. The broker-dealer then delivers the proceeds to the issuing company where the cash can be used for a variety of purposes. A higher stock price means a greater amount of money can be raised. The issuing company is able to raise this kind of capital on an as-needed basis with the option to refrain from offering shares if the available prices on a particular day are unsatisfactory. ATM offerings can be started and stopped at any point, and they can also become more aggressive by selling more shares and raising more money when there is an opportunity in the market or additional need by the issuing company. ATMs can be positioned in advance of an upcoming liquidity event or major milestone to take advantage of increased liquidity and a rising stock price.
Is there an upcoming liquidity event? Looking at the 10Q released it shows fully diluted net per share as being + .44 due to a huge increase in royalty revenue. Fidelity is showing they have beat analyst recommendations, as of today, by .67. That's huge.
Chart looks primed to go and I'll post one later with analysis.
