MYO Prices Secondary at Large Discount to Its June Reg A+ IPO
In June 2017, Myomo, Inc. (NYSE American: MYO) became the first Reg A+ to list on a national exchange.
MYO raised $5.0 Million through the sale of 665,498 shares of its common stock at a price to the public of $7.50 per share on June 9th. MYO’s stock popped to $14.45 in initial trading but had been on a downward trend ever since. Last week the stock was hovering below $3.00.
Many were concerned that MYO (and other Reg A+ IPOs) didn’t raise enough capital in its Reg A+ to cover the costs of being a NYSE listed company in addition to growth initiatives. To that end, MYO completed a follow-on offering earlier this month.
With Roth Capital Partners acting as sole manager, MYO raised $10 million in its secondary. MYO sold 4,175,000 shares of common stock and accompanying warrants to purchase 4,175,000 shares of common stock at a combined price of $2.40 per share. The warrants have an exercise price of $2.95 per share.
The $2.40 price represents a very large discount to June’s $7.50 IPO price. MYO is not the only Reg A+ IPO that has struggled. Nearly every Reg A+ IPO from this year is trading below its IPO price.
Why do you think Reg A+ stocks have performed poorly in 2017? We want to hear from you! Please share in the comments below or tweet @PubCoCEO with your thoughts.
Valuation is related to coverage for any new issue.
reg a great story but secondary with low price and the added
Warrants are not going help any deal. Profitable business models can end up highly overrated if the structure of the deal is never going to help shape a good long term relationship with investors who prefer stocks with non penny or low priced security status
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