MYO Prices Secondary at Large Discount to Its June Reg A+ IPO

REG A+ IPO

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.

MYO Chart.PNG

MYO Chart 

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. 

 


 

 

 

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