Expert Analysis: Class of May 2019 OTC Graduates
By: Joseph M. Lucosky, Managing Partner Lucosky Brookman LLP
The month of May saw a total of two companies uplist from the OTC onto national securities exchanges.
One of these companies operates in the biopharmaceutical industry, while another is in the cannabis industry.
Below is a brief description of these companies and selected information and observations of the path these companies pursued from the OTC to a senior exchange. For more information about the uplisting process, or any other questions or analysis, please contact Joseph M. Lucosky (firstname.lastname@example.org) at Lucosky Brookman LLP or visit http://www.lucbro.com.
May 2019 Graduates
AIT THERAPEUTICS, INC. (NASDAQ: AITB)
AIT Therapeutics, Inc. (the “Company” or “AIT”) (NASDAQ: AITB), a clinical-stage medical device and biopharmaceutical company focused on developing inhaled Nitric Oxide for the treatment of patients with respiratory conditions including serious lung infections and pulmonary hypertension based in Garden City, NY, uplisted onto The Nasdaq Capital Market on May 7, 2019.
Prior to its uplist the Company entered into a License, Development and Commercialization Agreement with Circassia Pharmaceuticals PLC, a company registered in England and Wales, pursuant to which the Company received milestone payments of $7,350,000 and $3,150,000 on each of January 23, 2019 and February 1, 2019, respectively. This enabled the Company to meet The Nasdaq Capital Market’s stockholders’ equity requirement of $5,000,000.
During 2018, the Company appointed two individuals to serve as independent directors on the Company’s Board of Directors in order to satisfy The Nasdaq Capital Market’s listing rules which require a company to have a majority of independent board members as well as an audit committee of the Board of Directors which is to include at least one “financial expert.”
On the trading day prior to listing, the Company’s opening and closing share prices were $5.30 and $5.75, respectively. On the day trading commenced on The Nasdaq Capital Market, the Company’s shares opened at $5.25 and closed slightly up at $5.80. Approximately 18,684 shares of common stock traded on the opening day of the uplist.
Organigram Holdings Inc. (TSXV & NASDAQ: OGI)
On May 17, 2019, Organigram Holdings Inc. (the “Company” or “Organigram”) (TSXV & NASDAQ: OGI), a leading licensed producer of medical and recreational cannabis, based in Moncton, Canada, announced that the Company’s shares of common stock were approved for listing on The Nasdaq Capital Market. Trading of the Company’s shares of common stock on The Nasdaq Capital Market began on May 21, 2019. Organigram’s shares of common stock will continue to be listed and trade on the Toronto Venture.
At the time of the uplist, the Company’s share price was above $4.00, The Nasdaq Capital Market’s minimum bid price requirement, so the Company did not need to effect a reverse stock split in order to satisfy the minimum bid price requirement and this was an organic uplist in nature.
On the trading day prior to listing, the Company’s opening and closing share prices were $8.07 and $8.35, respectively. On the day trading commenced on The Nasdaq Capital Market, the Company’s shares opened at $8.37 and closed slightly down at $7.81. Approximately 2,572,416 shares of common stock traded on the opening day of the uplist.
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For more analysis on the uplisting process, or any other questions or analysis, please contact Joseph M. Lucosky (email@example.com) 732-395-4402 at Lucosky Brookman LLP or visit http://www.www.lucbro.com.