Market Overview

Benzinga's Small Cap Movers for Wednesday February 27, 2013

Related FSGI
Stocks Hitting 52-Week Highs
UPDATE: Raymond James Upgrades First Security Group Following Solid 4Q13 Results
Related MERU
Morning Market Gainers
Top 4 NASDAQ Stocks In The Wireless Communications Industry With The Highest Gross Margin

Below are highlights from Benzinga's daily coverage of small cap securities making big moves:

Meru Networks

Shares of Meru Networks (NASDAQ: MERU), the Sunnyvale, CA e wireless networking company, rose 19% Wednesday on 17 times average volume.

Meru Networks announced Wednesday the pricing of an underwritten public offering of 3,000,000 shares of its common stock at a purchase price of $4.00 per share. Gross proceeds, before deducting the underwriting discounts and commissions and offering expenses payable by Meru, are expected to be approximately $12 million. The offering is expected to close on or about March 4, 2013, subject to satisfaction of customary closing conditions. Meru has granted the underwriter a 30-day option to purchase up to 450,000 additional shares of common stock to cover overallotments, if any. Directors and executive officers of Meru Networks will purchase shares from the underwriters at the public offering price.

Meru Networks closed at $4.91 on Tuesday.

First Security Group

First Security Group (NASDAQ: FSGI), the Chattanooga, TN holding company for its wholly-owned subsidiary FSGBank, rose 28% Wednesday on 7.5 times average volume.

First Security Group announced Tuesday that it has entered into definitive stock purchase agreements with institutional investors as part of an approximate $90 million recapitalization. Four investors will lead the Recapitalization, which also includes a conversion of the Company's TARP CPP Preferred Stock to common stock and sale of under- and non-performing loans. The lead investors will each invest approximately $9 million to acquire pro-forma ownership of approximately 9.9% of the total outstanding common stock, respectively. The Recapitalization is priced at $1.50 per share and was unanimously approved by the Company's board of directors.

First Security Group closed at $2.52 on Tuesday.


Shares of Zogenix (NASDAQ: ZGNX), the San Diego, CA pharmaceutical company, rose 40% Wednesday on almost 8 times average volume.

Zogenix announced Tuesday that it has been informed by the FDA that Zogenix is unlikely to receive an action letter for its NDA for Zohydro ER by the PDUFA goal date of March 1, 2013. Under the performance goals set by the FDA under PDUFA, the agency can miss the prescribed goal date for approximately ten percent of the NDAs that are submitted each year and still meet the performance goals for review of priority and standard applications.

Zogenix closed at $1.70 on Tuesday.

The information in this article is taken from public sources, press releases, and websites that cannot always be verified. Please note that investing in microcap stocks is highly speculative. The companies mentioned here are for information purposes only. Benzinga makes no claim as to the suitability of these stocks as an investment. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Posted-In: Long Ideas News Short Ideas Small Cap FDA After-Hours Center Movers Trading Ideas


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