Aptevo Therapeutics (APVO) : pricing of equity offering

 

Aptevo Therapeutics (APVO) slumps on almost 13x higher volume in response to its public offering of 19.85M shares of common stock and warrants to purchase up to the same number of shares at a price of $1.00 per share and warrant.

• The company is also offering pre-funded warrants to purchase up to 2.15M common shares at $0.01 per share and related warrants to purchase up to 2.15M common shares at $1.30 at a combined price of $0.99.
• Total gross proceeds should be ~$22.00M. Closing date is March 11.
• Yesterday's close was $1.48.

Tandem Diabetes Care (TNDM) : commences offering of its common stock, Series A warrants and Series B warrants

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Tandem Diabetes Care announces the pricing of an underwritten public offering of common stock and warrants for gross proceeds of approx. $16.2 mln

• Announces the pricing of an underwritten public offering of (i) 4,630,000 shares of its common stock, (ii) Series A warrants to purchase 4,630,000 shares of its common stock and (iii) Series B warrants to purchase 4,630,000 shares of its common stock, for gross proceeds of approximately $16.2 million, at a public offering price of $3.50 per share and accompanying warrants. The Series A warrants have an exercise price of $3.50 per share, are immediately exercisable and will expire on the fifth anniversary of the date of issuance. The Series B warrants have an exercise price of $3.50 per share, are immediately exercisable and will expire on the six-month anniversary of the date of issuance. The shares of common stock and the warrants will be immediately separable and will be issued separately. All of the shares of common stock and warrants to be sold in the offering are being offered by Tandem.
• Tandem intends to use the net proceeds from the proposed offering for working capital and other general corporate purposes. The offering is expected to close on or about October 17, 2017, subject to customary closing conditions.

Tandem Diabetes Care sees Q3 revs above consensus 

• Co issues upside guidance for Q3 (Sep), sees Q3 (Sep) revs of $26.5-27.5 mln vs. $26.24 mln Capital IQ Consensus Estimate. 
• The Technology Upgrade Program expired as of September 30, 2017 and more than 2,500 people participated in the Program since its inception in July 2016.
• "Hurricanes Harvey and Irma adversely impacted the normal business activities of our sales force, distributors, healthcare providers and potential customers in Texas, Florida and other impacted regions. For instance, the daily inflow to the insurance verification and approval portion of our sales pipeline decreased in early September compared to August, which coincided with the hurricanes. We also experienced a measurable decrease in our sequential monthly pump shipments for the Gulf Coast region for the month of September as compared to the month of August, whereas for all other sales regions we saw either relatively stable volumes or increases in monthly pump shipments for the month of September as compared to the month of August. In addition, we have two independent distributors located within the affected areas that experienced operational disruptions during the periods around the time of the hurricanes."
• Q4 Guidance: "We expect our share of the United States insulin pump market will be approximately 11% at the end of 2017, based on 2015 estimates of the United States insulin pump market by Close Concerns, Inc., an independent consulting and publishing company that provides diabetes advisory services...Historically, we have experienced product shipments and sales being weighted heavily towards the second half of the year, with the highest percentage of product shipments and sales occurring in the fourth quarter of the year. For instance, excluding 2016 when we experienced an unusual sales pattern and implemented our Technology Upgrade Program, in a typical year, our sales for the fourth quarter have ranged from approximately 35% to 38% of the total sales for the full year. We expect seasonality will have a similar impact on our sales in 2017, excluding approximately $3.5 million of deferred sales and upgrade fees received associated with our Technology Upgrade Program that we expect to recognize in the third quarter."

Michael Kors announces pricing of its secondary Public Offering

Michael Kors Holdings (NYSE:KORS) shares are trading down as the maker of purses and accessories prepares a secondary public offering of more than 11.6 million ordinary shares by Sportswear Holdings, one of its principal founding stockholders, at $76.75 per share.

Shares of the company fell 5% to 75.96 in early trading in the stock market today, Friday.

Two board directors, Silas Chou and Lawrence Stroll, original majority shareholders of the Hong Kong-based company, will step down after the sale.

The Fresh Market (TFM) plummets after reporting earnings on 21 Nov 2013

According to The Wall Street Journal there are three secondary offerings on tap for next week, but no IPOs. The largest of these, Sprouts Farmers Markets Inc. (NASDAQ: SFM), was supposed to price on Thursday, but that was delayed until Monday likely due to the weak earnings report from The Fresh Market Inc. (NASDAQ: TFM) earlier last week. Sprouts is planning to sell 25.9 million shares. Shares closed at $37.86 on Friday, which would indicate a capital raise of around $975 million.

Shares of specialty food retailer The Fresh Market (TFM) are sinking after the company’s third quarter results and full year guidance fell short of analysts’ consensus estimates.
Last night, The Fresh Market reported Q3 earnings per share of 23c and revenue of $364.5M. Analysts' expectations were for EPS of 26c and revenue of $378.57M. The company reported an increase in same store sales of 3.1%.

WHAT'S NOTABLE: The Fresh Market said it expects FY13 EPS of $1.42-$1.47, compared to the consensus estimate of $1.53. It also forecast FY13 same store sales up 3%-3.5%.
ANALYST REACTION: This morning, research firm Sterne Agee downgraded The Fresh Market to Neutral from Buy following the company's Q3 miss and weak guidance. The firm cited increasing competition and growing pains outside the company’s core market.
PRICE ACTION: In morning trading, The Fresh Market fell more than 19% to $40.80 on more than eight times its average daily trading volume. Year to date, the stock is down almost 15%.

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Groupon : Secondary offering next on to-do list

Now that Groupon Inc. has pulled its closely watched IPO across the finish line, it's time to start working on another stock offering.

Groupon's IPO Friday at $20 a share defied doubters who questioned its business model, but it made only 6% of its shares available for public trading. That's not enough to allow big mutual funds to buy in or the venture-capital firms that backed the Chicago-based daily-deal phenom to cash out. Both need more liquidity to trade shares freely without triggering big price swings. That requires a secondary offering that will put more shares on the open market within the next six months or so.

“Going public is a two-step process,” says Tim Loughran, a finance professor who studies IPOs at the University of Notre Dame. “First is the IPO. Then they'll need to do a secondary offering relatively quickly to let the venture capitalists exit and let the institutional investors get a bigger role.”

A secondary offering requires a rising stock price. To keep its shares climbing from their Friday closing price of $26.11, Groupon's business results over the next few months must banish persistent questions about its ability to keep growing and turn a profit.

Late in the trading day Monday, Groupon was trading down 1.3% at $25.78.

“No one knows what the long-term operating model is for the company,” says David Rudow, an analyst at Minneapolis-based Thrivent Investment Management Inc., one of the nation's largest mutual funds, who listened in on Groupon's investor road show. He's still deciding whether to buy, but he prefers a larger float.

Josef Schuster, founder of Chicago-based IPOX Schuster LLC, a $2.5-billion fund, is skipping Groupon's offering because of the small float. “We usually look for 8% to 10%,” he says.