Jaguar Animal Health Inc. (NASDAQ: JAGX) shares absolutely skyrocketed in Thursday’s session following the announcement of a common stock purchase agreement. The company announced that it entered into a $15 million common stock purchase agreement and a registration rights agreement with Aspire Capital Fund, a Chicago-based institutional investor. Immediately upon the execution of the agreement, Aspire purchased 222,222 shares of Jaguar common stock for $500,000.
It is worth noting that at Wednesday’s closing price of $1.32, the company had a market cap of just over $13 million, compared to a market cap of over $24 million at the current price level.
Prior to Thursday’s move, Jaguar had underperformed the broad markets on a year-to-date basis, with the stock down 41%. Over the past 52 weeks, the stock is down 80%.
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Lisa Conte, president and CEO of Jaguar, commented:
This Agreement provides Jaguar with added balance sheet strength and flexibility to support our ongoing clinical activities and the expected commercialization of our drug product candidates, and we welcome Aspire as a stockholder. Additionally, we expect that this Agreement may serve as an important asset as Jaguar continues discussions regarding potential business development and M&A activity.
Jaguar is an animal health company focused on developing and commercializing first-in-class gastrointestinal products for companion and production animals, foals and high value horses. Canalevia is Jaguar’s lead prescription drug product candidate, intended for the treatment of various forms of diarrhea in dogs. SB-300 is Jaguar’s prescription drug product candidate for the treatment of gastrointestinal ulcers in horses.
Shares of Jaguar were trading up 87% at $2.47 on Thursday, with a consensus analyst price target of $6.75 and a 52-week trading range of $1.19 to $6.76.
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