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Made a bit of money here, but two offerings in a row indicates a share printing machine. There is no way for a stock like that to build value if that's the way leadership is going to treat it. Hopefully, Ayro stops that nonsense and matures, but I have a feeling that its association with DropCar is indicative of its future. GLTA
The background with DropCar is odd, but having a company like Club Car brand your product with international distribution is a huge statement of faith. I've been looking for a value stock and I feel pretty good about this one. Of course...I've been wrong before, but I just don't see how Club Car, a business unit of Ingersoll Rand, would gamble with its reputation on a $20,000 product unless it was genuinely worthy of investment. Hopefully, this company is run right and the SEC filings show it.
OMG...another COVID-19 hype PR.
Frustrated that I missed the pump on this, but what a f'ing joke of a company. The latest isn't even specific with numbers like it was with Biolidics. Just another penny-stock-RS-is-on-the-way "deal". Are the kits with Apollo Med even EUA authorized??? No mention of that in the PR. Oh, hey...is that a tiny office building that Apollo occupies some part of at 401 GA-74 N, Peachtree City, GA 30269?
lol. This CEO is going to thoroughly wreck the company and that $64 million is going to go *poof!
GLTA. I'm out.
Oh, you are welcome. lol
Two-year old news...lol. How long ago was it that Disbrow announced ANOTHER reverse split that was averted by COVID hype with a multi-million dollar deal that went sour almost as soon as it was announced? AAAAAALLL the way back in February of 2020 stockholders thought they were going to be reverse split AGAIN. But, psshhhh...that's "old news". Down to $1.29. HAHAHAHA!
I just sold what's left of my holdings. You guys have convinced me that this company is garbage Good luck with those "cheapies". lol
The price is pretty lousy, actually. Factor in the reverse split in 2018 and the daily plunge while the market rallies and this paltry 1.5% rise is merely a sputter.
The stock was abysmal at $0.35. It looks bad only 33 cents above delisting/reverse split territory that it shot out of largely on promises of millions of dollars in sales that evaporated with a botched deal (Notice how there was never an announcement of millions of "ZOG test kits"). It looks even worse when the CEO follows that collapsed deal with silence and gives himself a raise. To be clear, this company has promising products that are being marketed and some are even FDA approved, but if Disbrow can't get his head out of the COVID-19 hype clouds then there is only trouble for the future.
During an unlikely week-long market rally, AYTU hasn't posted a single green day (or update). Tell me again how a multi-million dollar deal going sour is immaterial.
The price movement is telling.
Trying to digest this July 2nd 8-K
Is the company buying back shares issued at $0.98? If so, is it at market?
We can also see executive compensation increases. I'm cool with that, but not if what we have gotten the past few months continues. We need more communication, vision, and results.
https://seekingalpha.com/filing/5074019#EA123752AEX4-1_AYTUBIO_HTM
As of now, the only thing I am correct on is that the company has not provided clarity for investors on how inventory (and, consequently, capital flow) was affected by the cancellation of the Biolidics agreement. I've said before that I'm happy to be proven wrong and get a healthy return for my investment with a company marketing a diverse portfolio of products, but Disbrow has thus far failed in his duty toward full disclosure and making Aytu into more than a COVID-19 play stock.
No, that does not clarify anything about the 1.4 million test kits from a month earlier. Were those kits sold or disposed of leaving a small inventory of EUA approved kits? The PR you linked is completely ambiguous about Biolidics test kits. If they weren't disposed, then why doesn't the PR state "The 1.4 million test kits earlier identified in our inventory have been sold..."?
Instead, the company leaves it wide open to interpretation, which is a bullshit penny stock move. If this company is to genuinely earn its spot on the Russel 3000, then Disbrow needs to get his head out of the reverse split, penny stock mentality and into the mentality of building a reputable company with a vision that people want to invest in.
In which PR or 8K or any other communication from the company has it been clarified how many of the 1.4 million testing kits in the warehouse were from Biolidics? How hard would it be for Disbrow to release a statement that makes it clear how much the company spent on Biolidics kits that can't be used and won't be reimbursed? If it's not significant, then why not just say that? If it is significant, then why leave investors hanging?
I certainly hope so. I just don't see how the CEO is doing anything toward that goal. He has turned Aytu into something indistinguishable from any other COVID-19 hype stock and it has run its course.
Like I said, be a trader. There might be some great money to be made on Aytu. But no amount of wishing makes the lack of information from this CEO suddenly appear. Disbrow needs to step up.
Imagine that. A whole week of silence on a botched multi-million dollar distribution deal and the market keeps pummeling the price while any advantage to being recently listed on the Russel 3000 evaporates the stock back into RS territory. What is Disbrow doing with that $64 million in cash???
Why on Earth are you asking what I'm doing?
You should be questioning the CEO who, by the way, is silent yet another day. Just because you squeeze your eyes and and wish real hard for something to be "absolutely untrue...period" does not make it so. Prove it. Until then, my speculation based on available communication and the CEO's ongoing lack of vision with 14 products as well as his silence on a COVID-19 testing deal that has been pretty much the only news on Aytu for the past 3+ months is quite relevant.
There goes the $1.37 floor...
LOL...I didn't say Zhejiang Orient Gene and Orient Gene were different. I said the CEO has never stated that any part of the 1.4 million test kits referenced in June were part of the EUA. Every indication is that most if not all of them were from Biolidics. This company has 14 products to market including FDA approved prescriptions, but you focus on an experimental treatment that hasn't even had human trials yet and misrepresent what I say. Why is that?
You have quoted yourself, not the CEO.
You quoted the company as saying, "Virtually all antibody test-kits IN THE COMPANY"S WAREHOUSE (1.4 million tests, as of June 1, 2020) and those tests, that have been sold to date, have been sourced from Zhejiang Orient Gene."
What the company actually said was, "Virtually all antibody test kits in the Company’s warehouse and those tests that have been sold to date have been sourced from Orient Gene."
We have no idea how many authorized test kits were made available and sold relative to what was ordered and received from Biolitics
You are doing exactly what less-than-full-disclosure announcements rely upon from non-critical investors and promoters: to read more into a statement than what is actually said.
There isn't a single link you provided in which the company has stated that the 1.4 million kits REFERENCED IN EARLY JUNE were authorized through the EUA and NOT from Biolitics. How hard would it be for the CEO to state exactly what you have claimed he said considering the soured deal with Biolitics? The fact that he hasn't after a week is exactly why the market is showing a lack of faith in the stock at the moment. He is treating the company like a penny stock, not a Russel 3000 stock and it is very concerning.
Thump...thump...thump at $1.39 :/
$1.37 is the critical support level. It hasn't broken, but it is getting hammered hard and getting holes poked into it. If the CEO can't get his act together, you might very well get more cheap shares of this soon-to-be-again penny stock plaything.
This sort of bullshit article is exactly what I'm talking about.
https://247wallst.com/healthcare-business/2020/07/02/surging-covid-19-cases-could-alter-aytu-biosciences-path-to-profitability/
There isn't a single mention of any of Aytu's numerous other products that increased revenue 3-fold YOY. The CEO has people so focused on COVID-19 test kits and an experimental Healight that it's all they can talk about. So, when a deal involving almost 1.5 million test kits goes sour don't call it a "non-event". As far as anything the company has communicated for 2020, it is everything.
Where are you Josh Disbrow?
The price is down because even the faithful aren't buying right now. The CEO needs to step up to improve sentiment and build confidence in the unclear direction he has spent a lot of investor money and value to develop.
Be a trader. I've got nothing against that. but don't pretend to be an investor if you're going to conflate objective analysis with "fear mongering". The botched Biolidics deal has a lot of people irritated with the CEO and he still has not fully addressed it. As an investor, I take the good with the bad by being mature enough to accept both the good and the bad as elements of my reasoning for staying with the company or letting it go. Right now, I am struggling with staying with the company and nobody on this board has anything to offer in terms of rational reasoning for why Aytu has suddenly become singularly focused on COVID-19 when it has 14 or so products for various conditions to market and distribute with $64 million in cash on-hand.
As I recall, at least a few were not exercisable for a year.
More likely, $1.37 would mark a selloff. We are between the high and low ranges of securities that were sold for equity financing. I'm not sure yet what the average is of those shares, but the current price is probably close to it.
I would drink to that. Aytu desperately needs to clear the air on Biolidics and get back to focusing on its portfolio of long-term products. Let any COVID-19 revenue just be icing on the cake. That was the whole reason for the buy upgrade when it was only two cents below where it is now.
"While Aytu has established rights to distribute up to 1M rapid tests in 2020, and therefore, has created potentially valuable future revenue opportunities, we view availability of the rapid tests as merely a play on a COVID-19 opportunity, and focus more on Aytu’s potential for organic growth as a fully-integrated specialty pharmaceutical company as an underappreciated value proposition."
https://www.streetinsider.com/Analyst+Comments/UPDATE%3A+H.C.+Wainwright+Starts+Aytu+Biosciences+%28AYTU%29+at+Buy%3B+Organic+Growth/16945591.html
I understood. I'm just letting you know that I am happy to have my concerns proven wrong. Besides, everyone knows that corporate executives never deceive investors.
Not necessarily. All it takes is one appropriately detailed 8K providing full disclosure on COVID-19 test kit purchases. Until then and until the company gets back to focusing on its core product line there is a lot of unnecessary uncertainty with Aytu.
Resistance at $1.42 has been strong, but good luck.
It is too bad, because Aytu has a great product line. But all it takes is one stupid decision to potentially sink a company and force it to sell its assets in bankruptcy. It isn't even the stupid decision that bothers me. It's everything that has happened since then that fails to address it. When was the last update on developments or distribution of any product other than COVID-19 tests? There's been nothing since at least March 25th and certainly nothing to reassure investors that the 1.4 million test kits in inventory are not from Biolidics. Quite the opposite, in fact...
April 23, 2020:
Under the terms of the Agreement, Aytu will exclusively distribute Biolidics’ COVID-19 IgG/IgM rapid antibody test in the United States. Aytu has committed to purchase 500,000 tests within one business day from the date of signing of the Agreement. As an additional component of Aytu’s exclusivity, the Company has committed to purchase a minimum of 1,250,000 tests within the first three months of the Agreement.
Biolidics’ COVID-19 IgG/IgM Rapid Test has been issued Provisional Authorization for distribution by Singapore’s Health Science’s Authority (HSA), and the product has been authorized for export from Singapore. Biolidics’ COVID-19 IgG/IgM Rapid Test will be supplied from Biolidics’ facility in Singapore."
https://www.marketwatch.com/investing/Stock/aytu/SecFilings?subview=secarticle&sid=3089391&guid=14088139&type=8
June 1st:
"Additionally, more than 1.4 million COVID-19 IgG/IgM rapid tests have been delivered to the Company's warehouse in San Diego and are available for distribution."
https://www.biospace.com/article/aytu-bioscience-announces-emergency-use-authorization-of-covid-19-igg-igm-rapid-test/
Note that announcement is a PR and not an 8K and that it does not definitively state that any part of the 1.4 million kits are not from Biolidics.
We have this June 29th 8K, but again it does not specify how many test kits the company has ordered and received (and subsequently disposed of) from Biolidics.
"Virtually all antibody test kits in the Company’s warehouse and those tests that have been sold to date have been sourced from Orient Gene."
https://ih.advfn.com/stock-market/NASDAQ/aytu-bioscience-AYTU/stock-news/82746137/current-report-filing-8-k
Prove it with a PR, 8K, or any other communication from the company. Nowhere does the company specifically state that the 1.4 million test kits in inventory are from Orient Gene and now that the company is trading on the Russel 3000 there is even less excuse for lack of full disclosure. What we do have is an investigative report that shows Aytu got caught up in the hype of COVID-19 testing and distributed unapproved kits just like what the Biolidics deal arranged. But, instead of addressing that, Aytu has chosen for over two months to remain silent and act as if the deal ever had a chance. That's what I expect a company to do that made a poor decision that will cost many millions of dollars in losses.
There is an extremely high likelihood that 1.4 million test kits are collecting dust and destined for an incinerator. If not, then where is the CEO on this?
Something to look out for...
Pay attention to what company leadership says about inventory, the source of inventory, and the exact reasons that the Biolidics deal disintegrated. There is no reason for the CEO to not provide specifics on how many Biolodics test kits need to be written off. There is also no reason for the company to not disclose the nature of circumstances leading to the failure of the distribution agreement if the circumstances were truly due to government policy. All of this should have already been exhaustively addressed, which is why I am being hard on the company.
Everything points to the company having taken a gamble on millions of dollars worth of inventory that it realized was useless two months ago, but had no way to correct its mistake. I very much expect to see a huge charge-off of $10 million or more and that will infuriate investors even more into escalating the current investigation against the company over the Biolidics fiasco.
Someone mentioned earlier that the Biolidics deal is a "non-event". Try telling that to these investors who now have even more compelling evidence of a coverup...
"The investigation concerns whether Aytu and certain of its officers and/or directors have violated federal securities laws.
On March 10, 2020, Aytu reported that it reached a license agreement for the exclusive distribution of a point-of-care rapid test for certain COVID-19 antibodies in the U.S. for three years, with three year auto-renewals thereafter. Then, on April 17, 2020, pre-market, NBC News issued a report entitled "Unapproved Chinese coronavirus antibody tests being used in at least 2 states." Citing health officials and U.S. Food and Drug Administration ("FDA") filings, the article reported that Aytu has been distributing unreliable COVID-19 tests from unapproved Chinese manufacturers, which were shipped to the U.S. after the FDA relaxed its guidelines for tests in mid-March. On this news, Aytu's stock price fell $0.12 per share, or 8%, to close at $1.38 per share on April 17, 2020."
https://www.prnewswire.com/news-releases/aytu-investigation-bronstein-gewirtz--grossman-llc-notifies-investors-of-investigation-of-aytu-biosciences-inc-301043170.html
We'll see if "Virtually all antibody test kits in the Company’s warehouse and those tests that have been sold to date" on May 29th are the 1.4 million kits mentioned in the PR released June 1st.
I've been around long enough to spot double-speak when I see it. It would be easier to look past and assume the company is working in the best interest of investors if the Biolidics deal hadn't fallen apart the way it did. Hindsight is now prudent and it must be asked how many of the 1.4 million kits are approved for use. The announcement you copied is structured in such a way as to make it entirely questionable that the 1.4 million test kits are actually from Healgen Scientific. I strongly suspect that a large portion of them, if not possibly all of them, are from Biolidics AND will not be reimbursed per the 8K.
The Biolidics deal was never presented as a "backup". That's your words, not the company's. As for the quantity of test kits, now there is a serious question as to what test kits were delivered from Biolidics. The announcement you copied does not specify and the recent 8K states that Aytu will be reimbursed only for test kits not delivered. How many WERE delivered (before import issues?) and why is that not detailed in the 8K? Are any that were delivered included in the 1.4 million on hand? If so, are there any not approved by the CDC? Aytu really flubbed its COVID-19 communication.
The agreement is mutual, so it was not just Biolidics who backed out. The issue at hand is that Aytu allowed the agreement to continue to affect share price when it was doomed very early on with no updates. It would have been one thing if Aytu acknowledged the import roadblock and updated investors that it was exploring strategies to overcome it, but there was nothing until the deal was simply cancelled along with a weird announcement about a new product development that is essentially just an idea. It does not look good for the company at all when there are so many shady stocks out there doing exactly the same thing and pilfering investors. Aytu should not have allowed COVID testing to become the focus of its operations either in practice or in the minds of investors. The question is, why did the company leadership do that when there are so many products on the books with long-term potential?
Considering the recent developments, you are wise to be cautious. I expect with the cancellation of the distribution deal that investors are going to initiate litigation against the company for misleading them. The last 8K provides the ammo for a case.
You're right, Aytu released an 8K, not a press release.
It was Biolidics that released the PR.
However, the market reacts to both the same way and the 8K was loaded with the same sort of fluff that investors initiated an investigation over. I'm not saying that Aytu intentionally misled investors with the Biolidics "deal" announcement, but the 2 months of silence on the near immediate discovery that there were import issues only to be followed by cancellation of the agreement and a bogus "joint venture" into home testing kits that is suspicious, at best, puts into serious question the caliber of leadership here.
I am perplexed at the 8K because there is so much more to follow up with for this company. It makes me have considerable doubt about what the company's intentions are with all that cash it has raised. Why hasn't there been an 8K on a new marketing program or some other REAL development? The best products in the world are useless if poorly managed.
That press release is part of a mixed bag.
https://sec.report/Document/0001654954-20-007046/
I'm not a fan of that PR. Nothing is agreed upon and it looks like a distraction from the failure of the original agreement that is possibly going to negatively affect the announced investigation into the original distribution announcement (as in, turn the investigation into litigation).
That is here:
https://www.businesswire.com/news/home/20200421005952/en/Law-Offices-Frank-R.-Cruz-Announces-Investigation
On the other hand, Aytu is showing excellent revenue growth with operating losses that are decreasing substantially as a percent of growth. With enough cash-on-hand to more than cover debt, Aytu is showing promise with its newly acquired products and the capital to market them. The COVID testing that is plastered all over this page is NOT the main source of revenue; it may not even become a substantial source of revenue; and it is certainly a temporary source of revenue.
The moderators need to seriously consider showing the full diversity of the products offered by Aytu because this page makes the company look like just COVID hype, which, despite any other flaws, it isn't. COVID test kits aren't even factored in the 3x+ Q1 revenue growth from 2019 to 2020, so why is it the only thing plastered on the header?