From Beanie Babies to rare coins, scarcity has often meant greater value. HTG Molecular Diagnostics (NASDAQ:HTGM) provided one more example of just that by surging upward in Tuesday’s trading after closing its public offering last week.
The company managed to raise approximately $10 million following the public offering, which closed on December 23. Around 1.29 million shares were offered, along with warrants to buy shares that were paid for in advance. The warrants come with an exercise price of $7.50 per share. After expenses and the like are taken out, HTG Molecular expects to have about $8.7 million in cash on hand. It plans to use said cash for “general corporate purposes,” ranging from research to capital expenditures and more.
HTG Molecular will need those resources to support its upcoming work. It’s set to offer a new event in a webcast series about its work in RNA profiling. RNA profiling allows HTG Molecular to improve its work in drug development, which will give it more products to bring to market and likely improve the stock from there. Further, some analysts are already looking to the event to offer results about its use in RNA profiling. That may mean a new product is already in the pipeline.
Such a move would no doubt prove welcome to HTG Molecular investors, as the last five days of trading in the stock featured a drop of nearly 50%. Today’s movement served as a recovery but not a complete one. However, with a slightly higher boost, the company will completely recover to where it stood just five days ago.
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