Venaxis Inc fka APPY

[BAD HEMPER]

I agree. This one with the recent news could explode soon

[cjstocksup]

I agree and there was a massive 250 K block buy at .33 pre market. The HOD was about .37. APPY should breakout above .30 and .32 soon then we could break the HOD hard this afternoon.

[BAD HEMPER]

.30 breach coming. That action before the open today is a sign of things to come IMO

[cjstocksup]

Daniel Ward at seekingalpha was positive on APPY just 2 days ago. Imagine with this news what kind of an article he will be putting out anytime now. that should also bring the PPS up big. They do bring in a lot of volume and help many stocks run with their articles. Looking forward to a new article out from them any time now.
Conclusion

The NASDAQ biotechs with less than $10 million market cap can present opportunities with enormous upside. Often though, pickings can be slim as these stocks are at these depressed valuations due to suspect outlooks. My current favorite off the list is Venaxis as I think any of a number of announcements could send the stock soaring substantially higher from current levels. As always, make sure to do thorough due diligence and tread carefully when investing in these types of microcaps.

http://seekingalpha.com/article/3830966-biotech-weekly-nasdaq-sub-10-million-market-cap-club

[cjstocksup]

I agree any RS is for the Nasdaq listing requirements for the profitable company to move in for institutional investors ahead. APPY could see big $$$ in the days and week ahead not to mention what we could see down the line.

[RNsidersbuying]

So what are we thinking $1.00 to $2.00 per APPY share as far as fair value once the first transaction completes?

No way to make any valid estimate at this time until we see the financials of the new company - one article stated they are profitable?

The company reached profitability in 2007

http://www.biomarkcapital.com/portfolio/#strand-life-sciences

Also, I see an R/S here as a positive raising the pps to attract institutions. So much potential with this deal and even if it falls through, it's still trading at 1/2 cash!!

What are these sellers buying? Unreal

[cjstocksup]

So what are we thinking $1.00 to $2.00 per APPY share as far as fair value once the first transaction completes?

[RNsidersbuying]

APPY gets an additional nod from Daniel Ward at seekingalpha posted 1/25 just prior to the merge announcement:

Conclusion

The NASDAQ biotechs with less than $10 million market cap can present opportunities with enormous upside. Often though, pickings can be slim as these stocks are at these depressed valuations due to suspect outlooks. My current favorite off the list is Venaxis as I think any of a number of announcements could send the stock soaring substantially higher from current levels. As always, make sure to do thorough due diligence and tread carefully when investing in these types of microcaps.

http://seekingalpha.com/article/3830966-biotech-weekly-nasdaq-sub-10-million-market-cap-club

[reconranger]

APPY- link to webcast https://venaxis.com/webcast/ -reconranger

[cjstocksup]

APPY afterhours news yesterday~ CASTLE ROCK, Colo., Jan. 26, 2016 /PRNewswire/ -- Venaxis®, Inc. (Nasdaq: APPY), announced today that it has entered into a series of agreements for a transaction with Strand Life Sciences Private Limited (Strand LS) and its shareholders. Strand LS is a privately-held, global genomics and bioinformatics company. Strand LS operates clinical reference labs in the US through its wholly owned subsidiary Strand Genomics, Inc., (Strand U.S.) and directly in India, providing testing and lab services in India and other world-wide markets. Strand LS has commercialized a next generation sequencing (NGS) based, targeted, multi-gene, pan-cancer diagnostic panel in select international markets and has engaged in initial commercialization activities in the United States.

Assuming participation by 100% of the Strand LS shareholders, the effect of the transaction will be that Strand LS shareholders and the employees and directors who are option-holders in Strand LS will own directly and beneficially approximately 68% of the combined enterprise and the current shareholders of Venaxis will own approximately 32%. Due to Indian tax and financial regulations, the transaction is being structured as purchases, by Venaxis, of the Strand LS shares from the Strand LS shareholders, followed by an immediate re-investment of those sale proceeds, by the Strand LS shareholders, into Venaxis Common Stock.

To comply with certain long-term holding period requirements under Indian tax law, the transaction is expected to be completed in two closings. The first closing will occur upon receipt of the necessary approvals from the Venaxis shareholders, receipt of all other required approvals and satisfaction of identified closing conditions. The second closing will occur approximately six months later. At each closing, Venaxis will enter into resale registration rights agreements with the Strand LS shareholders participating in such closing. The boards of each company have unanimously approved the transaction, however this transaction is subject to Venaxis shareholder approval.

At the first closing, Venaxis will own a majority of the shares of Strand LS, will change its name to Strand Life Sciences, and will change its NASDAQ trading symbol. As part of the first closing, following Venaxis shareholder approval, a Venaxis subsidiary will enter into an asset purchase agreement with Strand U.S. in which it will acquire substantially all of the assets and liabilities of Strand U.S. in exchange for cash consideration paid to Strand U.S.

Advancing to the execution of the agreements with Strand LS, its shareholders and Strand U.S. represents the outcome of an extensive strategic process initiated by Venaxis in early 2015. Venaxis has also commenced, and expects to continue to attempt to locate a partner or other third-party interested in advancing development and or commercial activities of the Venaxis appendicitis portfolio. Aligning Strand Life Sciences' proven technological expertise in genomic profiling, bioinformatics and data curation with Venaxis' financial resources, NASDAQ public listing and key management personnel provides an opportunity for Strand Life Sciences to continue to commercialize its global business model towards what is believed to be a valuable enterprise for the combined shareholders.

Following approval by the Venaxis shareholders and satisfaction of the other closing conditions, at the first closing, Dr. Vijay Chandru, the co-founder and current Executive Chairman of Strand LS, will serve as Executive Chairman of the combined company's Board of Directors, Steve Lundy will become the Chief Executive Officer of the combined company and Jeff McGonegal will continue as CFO. The initial combined board will consist of seven members with four from Strand LS and three from Venaxis.

Commenting on the transaction, Dr. Vijay Chandru said, "On behalf of the Strand LS shareholders, we believe that this transaction represents an attractive opportunity for Strand Life Sciences, as an agile innovator in clinical genomics, to combine forces with Venaxis, a public company in the United States with experienced executives and board members to help it rapidly expand market adoption of StrandAdvantage™ and other future product offerings."

"We are pleased to announce this transaction and are excited by the significant opportunity we believe it presents for shareholders of Venaxis and Strand LS," said Steve Lundy, Chief Executive Officer of Venaxis, Inc. "The combined company will benefit from Strand Life Sciences' 15 year successful history of technological expertise in genomic profiling, bioinformatics and data curation. Our initial focus will be to improve patient outcomes through the use of the StrandAdvantage pan-cancer gene panel, which was commercially launched in the United States in 2015. The combined company is expected to be focused on the continued commercialization of StrandAdvantage, as well as the development of additional oncology-related diagnostics."

Raymond James & Associates, Inc. and Oppenheimer & Co. Inc. are acting as joint financial advisors to Strand LS and Baker & Hostetler LLP is acting as legal counsel for Strand LS. Ballard Spahr LLP is acting as legal counsel to Venaxis.

Conference Call
Venaxis and Strand LS will host an investor conference call to discuss the transaction on Wednesday, January 27, 2016, at 8:30 a.m. ET. The conference call will be hosted by Steve Lundy, President and CEO of Venaxis, Inc.

[cjstocksup]

.71 cash and now the APPY merger news. IMO we could see dollars again ahead.

Great! $0.71 cash per share after sale of headquarters, closed $0.25 before the announcement. Let's see where it goes and what is said in the conference call.

[cjstocksup]

Added 4 to 5 times here below .30. APPY should mean some big $$$ ahead.

[cjstocksup]

If you listened it sounds like a done deal they are closing it in 2 days. That is fast. That would mean big $$$ for us APPY shareholders.

[tste9]

Yes and Yes! Lets hope deal goes through.

[cjstocksup]

You must have bought APPY over 1 year ago to have paid over $3.00 a share. Did you listen to the CC this AM? Sounds like the deal closes in only 2 trading days. That is excellent.

[RNsidersbuying]

You need $3 to breakeven? Is that doable?

31M APPY O/S = 32% of the new venture which would put the revised total at approx. 100M O/S. PPS of $3 and a $300M cap is a bit high without more positives or institutions slapping asqkue but I think a $100M cap is doable with this merge.

Strand LS will own directly and beneficially approximately 68% of the combined enterprise and the current shareholders of Venaxis will own approximately 32%.

[reconranger]

Save some for me. LOL. lOCKED AND LOADED-RECONRANGER

[cjstocksup]

Loading APPY at .30 this AM

[tste9]

I am a long time owner of this stock. I need 10x to break even! Hope the India deal goes through. GLTA

[reconranger]

APPY, looking ready for huge run-reconranger

[BettingAngles]

Boomtime..

[reconranger]

http://forbesindia.com/article/hidden-gems/strand-lifes-sciences-bringing-genetic-tests-to-the-average-customer/38240/1

[reconranger]

APPY - Weekly chart -reconranger

[reconranger]

Chart looking great-reconranger

[reconranger]

APPY- Chart

[reconranger]

Keep an eye on this one today-reconranger

[Lone Wolf]

So it would seem. Hmmmm....

$APPY

[powerc]

Reverse merger with an indian company with operations in US. More info from the vc investor http://www.biomarkcapital.com/portfolio/#strand-life-sciences

[DiscoveryStock]

Great! $0.71 cash per share after sale of headquarters, closed $0.25 before the announcement. Let's see where it goes and what is said in the conference call.

[RNsidersbuying]

CASTLE ROCK, Colo., Jan. 26, 2016 /PRNewswire/ -- Venaxis®, Inc. (Nasdaq: APPY), announced today that it has entered into a series of agreements for a transaction with Strand Life Sciences Private Limited (Strand LS) and its shareholders. Strand LS is a privately-held, global genomics and bioinformatics company. Strand LS operates clinical reference labs in the US through its wholly owned subsidiary Strand Genomics, Inc., (Strand U.S.) and directly in India, providing testing and lab services in India and other world-wide markets. Strand LS has commercialized a next generation sequencing (NGS) based, targeted, multi-gene, pan-cancer diagnostic panel in select international markets and has engaged in initial commercialization activities in the United States.

Assuming participation by 100% of the Strand LS shareholders, the effect of the transaction will be that Strand LS shareholders and the employees and directors who are option-holders in Strand LS will own directly and beneficially approximately 68% of the combined enterprise and the current shareholders of Venaxis will own approximately 32%. Due to Indian tax and financial regulations, the transaction is being structured as purchases, by Venaxis, of the Strand LS shares from the Strand LS shareholders, followed by an immediate re-investment of those sale proceeds, by the Strand LS shareholders, into Venaxis Common Stock.

To comply with certain long-term holding period requirements under Indian tax law, the transaction is expected to be completed in two closings. The first closing will occur upon receipt of the necessary approvals from the Venaxis shareholders, receipt of all other required approvals and satisfaction of identified closing conditions. The second closing will occur approximately six months later. At each closing, Venaxis will enter into resale registration rights agreements with the Strand LS shareholders participating in such closing. The boards of each company have unanimously approved the transaction, however this transaction is subject to Venaxis shareholder approval.

At the first closing, Venaxis will own a majority of the shares of Strand LS, will change its name to Strand Life Sciences, and will change its NASDAQ trading symbol. As part of the first closing, following Venaxis shareholder approval, a Venaxis subsidiary will enter into an asset purchase agreement with Strand U.S. in which it will acquire substantially all of the assets and liabilities of Strand U.S. in exchange for cash consideration paid to Strand U.S.

Advancing to the execution of the agreements with Strand LS, its shareholders and Strand U.S. represents the outcome of an extensive strategic process initiated by Venaxis in early 2015. Venaxis has also commenced, and expects to continue to attempt to locate a partner or other third-party interested in advancing development and or commercial activities of the Venaxis appendicitis portfolio. Aligning Strand Life Sciences' proven technological expertise in genomic profiling, bioinformatics and data curation with Venaxis' financial resources, NASDAQ public listing and key management personnel provides an opportunity for Strand Life Sciences to continue to commercialize its global business model towards what is believed to be a valuable enterprise for the combined shareholders.

Following approval by the Venaxis shareholders and satisfaction of the other closing conditions, at the first closing, Dr. Vijay Chandru, the co-founder and current Executive Chairman of Strand LS, will serve as Executive Chairman of the combined company's Board of Directors, Steve Lundy will become the Chief Executive Officer of the combined company and Jeff McGonegal will continue as CFO. The initial combined board will consist of seven members with four from Strand LS and three from Venaxis.

Commenting on the transaction, Dr. Vijay Chandru said, "On behalf of the Strand LS shareholders, we believe that this transaction represents an attractive opportunity for Strand Life Sciences, as an agile innovator in clinical genomics, to combine forces with Venaxis, a public company in the United States with experienced executives and board members to help it rapidly expand market adoption of StrandAdvantage™ and other future product offerings."

"We are pleased to announce this transaction and are excited by the significant opportunity we believe it presents for shareholders of Venaxis and Strand LS," said Steve Lundy, Chief Executive Officer of Venaxis, Inc. "The combined company will benefit from Strand Life Sciences' 15 year successful history of technological expertise in genomic profiling, bioinformatics and data curation. Our initial focus will be to improve patient outcomes through the use of the StrandAdvantage pan-cancer gene panel, which was commercially launched in the United States in 2015. The combined company is expected to be focused on the continued commercialization of StrandAdvantage, as well as the development of additional oncology-related diagnostics."

Raymond James & Associates, Inc. and Oppenheimer & Co. Inc. are acting as joint financial advisors to Strand LS and Baker & Hostetler LLP is acting as legal counsel for Strand LS. Ballard Spahr LLP is acting as legal counsel to Venaxis.

Conference Call
Venaxis and Strand LS will host an investor conference call to discuss the transaction on Wednesday, January 27, 2016, at 8:30 a.m. ET. The conference call will be hosted by Steve Lundy, President and CEO of Venaxis, Inc.

[RNsidersbuying]

APPY .30 - gets a nod from Daniel Ward at seekingalpha:

Venaxis (NASDAQ:APPY) - 15% Allocation: Venaxis is a new name to my Top Value Biotechs list. Venaxis is an in vitro diagnostic company developing and commercializing its unique multi-biomarker diagnostic test, the APPY1 test. While the name popped 50% within a few days after I initially discussed it in a spotlight piece back in April, the name has lagged since. When I wrote about the name in late July, I expected the company to would likely follow up with a Q3 business update on the path forward with APPY1, but the company has been extremely quiet. Two main points I would like to highlight are as follows:

1. Sale of Headquarters: The only piece of news that has come out since the last business update in late June is the fact that the company sold its corporate headquarters in Castle Rock, Colorado. The company announced through the 8-K filed on October 21st that it sold its headquarters to Niebur Golf Development, LLC for $4,053,000 with closing expected to take place in December. The company expects to generate $1.7 million in net cash from this sale after expenses and mortgage payoffs. Post-closing the company will just pay a lease payment of $22,000 per month. Why would a company sell its headquarters? The sale cleans up the balance sheet in that the company will get $990,500 in cash at close and will receive a note receivable for the remainder of money owed. The company can pay off debt and is now only committed to a lease that can be ended with 60 days' notice with the ability to provide notice starting January 31.

2. What is Going on at Venaxis?: Other than the sale of the headquarters, news has been nonexistent. Let's think critically about the one piece of news we have gotten. Cleaning up the balance sheet by taking care of selling the company's main property and equipment is something I view as preparing the company for a strategic action. Additionally supporting this line of thinking is the fact that the company has not had a business update call for six months, which is unheard of and signals to me that they are in the process of a substantial strategic action. Even when considering cash burn of $1.35 million per quarter (the level of cash burn management has guided previously) or even cash burn up to $2.00 million given that we are generally unsure what exactly the company is doing, cash at year end would still likely be between $16.9 and $17.6 million based on the Q3 end cash balance. Adding the $990,500 in upfront cash from the real estate deal would bring this cash estimate up to between $17.9 and $18.6 million. The company may use some of the cash to pay off the mortgage note, but this would not affect shareholder equity. Shareholder equity was $18.9 million as of Q3 end. Based on a market cap of only $9.6 million, the stock currently trades at only 0.5x-0.6x based on book value and cash value. Way back in the June 2015 business update, the company had noted it was reviewing a variety of business opportunities. While I had initially thought the company would just be doing an asset buy in the in-vitro diagnostics space, the company's more or less silence over the past 6 months makes me think they could be reviewing a more substantial strategic action like a reverse merger. If the company were just looking at a more minor strategic action, I would expect them to keep investors much more updated on what was going on with other parts of the business like APPY1 and APPY2.

Concluding Thoughts On Venaxis: Ultimately, given the lack of communication with shareholders, it's hard to predict exactly what is happening at Venaxis. While I think the sale of the headquarters combined with the company dropping off the radar in terms of updates for six months means that the company may be completing a more substantial strategic alternative (such as a reverse merger) that was identified through the business development review, I want to acknowledge that this is merely conjecture as there are a wide variety of things that could be going on at Venaxis. While I do think we may very well see a strategic alternative, it's also possible that the next update brings disappointment in terms of lack of progress with APPY1 and APPY2. With the stock trading at 0.5x-0.6x book and roughly the same ratio based on cash, I think downside is muted though given the balance sheet even if the company provides a disappointing, lackluster update.

http://seekingalpha.com/article/3779066-biotech-weekly-top-value-biotech-picks-for-2016

[SPM555]

Pulling back on minuscule volume and back testing support, I'm not giving up on it yet, though if it gets stuck back below .30 and can't recover I'll have to change my tune.

[tmeier]

Price is sinking

[DiscoveryStock]

5X the volume, preparing for the races.

[SPM555]

Volume was up again today, highest volume bar since this summer. Highest close in a couple of months.. is something brewing?

[SPM555]

Wakey, wakey. Eggs and bakey.

[DiscoveryStock]

Yup, the office space gives an extra cash per share.

[SPM555]

I read that after they recently sold some office space, they'll be sitting on .71 cash per share. Either way trading under it's book value and could indeed be ready to pop. The short squeeze on KBIO has bio shorts on edge and bio bulls looking for anything resembling that to take a shot on. With the recent uptick in volume now, I'm definitely getting interested here.

[DiscoveryStock]

$0.61 cash per share, more than 4X the average volume the last two days (holiday week). I think it's about to pop.

[SPM555]

No chatter about this one yet? Starting to move on strong volume, plus biotechs have been popping with the likes of KBIO and AEZS.

[RNsidersbuying]

What are the sellers buying? Unreal how they just keep slapping offers at .30, half cash!

[RNsidersbuying]

Silence, we might can still get mid-.20's here and under $2's over at the other best biobust, VSTM

[beach_trades]

$APPY should get going tomorrow after $KBIO move

[RNsidersbuying]

APPY .30 - averaged up on yesterday's Q3 filing updates. Now my largest position.

Retained .61 tangible book (mostly cash) on a -.05 burn, as expected, while holding an accumulated deficit total of $102M. What's that $102M potential writeoff worth as a standalone in a reverse-merge scenario?

The Company has experienced recurring losses and negative cash flows from operations. At September 30, 2015, the Company had approximate balances of cash and liquid investments of $18,932,000, working capital of $18,278,000, total stockholders' equity of $18,901,000 and an accumulated deficit of $102,628,000.

Property sale to generate $1.7M (+.055 pr share) cash in Q4:

Note 9. Subsequent Event:
Subsequent to September 30, 2015, on October 16, 2015, the Company entered into a contract to sell its corporate headquarters, land and building to a third party at a purchase price of $4,053,000. The closing is expected to occur in December 2015. In addition to agreeing to the sale, the Company will lease back from the Buyer approximately 22,000 square feet (approximately 55% of the total square footage) in the building under a month to month lease that requires 60 days' notice by either party to terminate and notice cannot be made prior to January 31, 2016. The lease payments will be approximately $22,000 per month base rent plus the Company's proportionate shares of expenses, taxes and utilities. The sale is expected to generate approximately $1.7 million in net cash after expenses and mortgage payoffs.

Shareholder lawsuit dismissed:

On August 7, 2015, the Plaintiffs in the Boldt Action filed a Notice of Voluntary Dismissal Without Prejudice and thereupon the case was dismissed.

[RNsidersbuying]

APPY .28 - announces sale of property at $4M.

Item 1.01. Entry into a Material Definitive Agreement.
On October 16, 2015, Venaxis, Inc. (the "Company") entered into a Contract to Buy and Sell Real Estate (the "PSA") with Niebur Golf Development, LLC (the "Buyer") related to the sale of the Company's corporate headquarters in Castle Rock, Colorado (the "Property"). The purchase price is $4,053,000. The closing is expected to occur in December 2015.
In addition to agreeing to sell the Property, under the PSA the Company will lease back from the Buyer approximately 22,000 square feet in the Property. The lease payments will be approximately $22,000 per month base rent plus the Company's proportionate shares of expenses, taxes and utilities.

http://ih.advfn.com/p.php?pid=nmona&article=68971732&symbol=APPY

In the recent Q, the Balance Sheet shows the property asset value of $2,026,365. Does this add another $2M to Book Value? Also no mention of the 9/9/15 (under $1) delisting deadline - one must assume that they did not get delisted somehow?

[RNsidersbuying]

Added a bundle at $.25.

$.64 tangible book expecting a .07 burn in the Q3 filing. I see worst case for the selloff that they got delisted to stinkypinks - so show me a stinkypink trading at less than 1/2 cash?

[RNsidersbuying]

Reloading at pps .29 - management really letdown with giving us plebes zero update to an open SEC-filed 9/9/15 delisting deadline notice? Seems they must have gotten an extention otherwise any delisting action would not have gone unnoticed?

Either way APPY's priced right here below .30 - trading at 1/2 cash.

[willlbone]

Is everybody APPY?

[RNsidersbuying]

100k chunk on ask now at $.325. What a beautiful cashrich setup here but management's MUM on the 9/9 delisting deadline is crushing any interest? Very likely see .20's, maybe low .20's??

[RNsidersbuying]

or until September 9, 2015, to regain compliance with the minimum bid price requirement.

Unreal the silence from management? What are shareholders to think? Will they wake tomorrow with their shares trading in stinkypinkyland?? Institutions still own 10% - would they bail hastily??