Market Overview

Why Shares Of Micro-Cap Oncology Biotech Oasmia Are Ripping Higher

Share:
Why Shares Of Micro-Cap Oncology Biotech Oasmia Are Ripping Higher

Shares of the thinly traded micro-cap biotech OASMIA PHARMACE/ADR (NASDAQ: OASM) were advancing strongly Friday.

What Happened

Sweden-based Oasmia, which develops new generation human and veterinary oncology drugs, said Friday ahead of the market open that it has reached an agreement with its largest shareholder Arwidsro that would settle all outstanding balances and support a planned capital infusion into Oasmia. 

The agreement provides for the fulfillment of a commitment Arwidsro made in January 2018 to provide capital of 75 million Swedish krona ($7.9 million) through the exercise of warrants.

Oasmia will also acquire Arwidsro's claims OF 60.2 million SEK to MGC for 40.2 million SEK, with the difference added to the former as a positive earnings item, according to Oasmia. 

Why It's Important

These measures will substantially reduce Oasmia's liabilities and increase its equity and liquidity, the company said. 

"It feels good to straighten out some historical question marks and close further parts of our review by fulfilling past agreements. In addition, getting SEK 20 million to reduce our debt burden is very positive," ChairmanJörgen Olsson said in a statement. 

"The most important thing now is to get progress, capital and stability to continue the path towards a commercially successful pharmaceutical company." 

Earlier on Thursday, the company announced the creation of a business advisory board to help with the commercialization of Apealea, its ovarian cancer drug, as well as the evaluation and development of market opportunities for other product candidates.

Oasmia shares were skyrocketing 76.42% to $2.17 on roughly 438 times their average volume at the time of publication Friday. 

Related Links:

Attention Biotech Investors: Mark Your Calendar For These July PDUFA Dates

Cytori CFO Resigns, Biotech Restructures In Bid To Focus Resources On Lung Cancer Drug

Posted-In: Biotech News Financing Movers Trading Ideas General Best of Benzinga

 

Related Articles (OASM)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

ETC/USD Maintains The Lead Ignoring Market's Bear Pressure

GBP/USD Falling As The Greenback Gains Ground